PPSD for the first phase of the PRIME program FEDERAL DEMOCRATIC 12/18/2023 REPUBLIC OF ETHIOPIA POWER SECTOR REFORM INVESTMENT AND MODERNIZATION IN ETHIOPIA (PRIME-1) (P176731) PROJECT PROCUREMENT STRATEGY FOR DEVELOPMENT (PPSD) PROJECT PROCUREMENT STRATEGY FOR DEVELOPMENT (PPSD) PPSD for the first phase of the PRIME program PART 1/2 ETHIOPIAN ELECTRIC UTILITY (EEU) PROJECT PROCUREMENT STRATEGY FOR DEVELOPMENT (PPSD) December 2023 PPSD for the first phase of the PRIME program Table of Contents 1. Project Overview .................................................................................................................2 1.1. .................................................................................................Project Description 2 1.2. Project Development Objectives ...................................................................................3 1.3. PDO Level Results Indicators.........................................................................................3 1.4. Project Components .....................................................................................................3 2. Strategic Assessment of Operating Context and Borrower Capability.................................5 2.1 Operational Context........................................................................................................5 2.2 Assessment of Client Capability and Project Implementation Unit (PIU) .........................6 2.3 Market Research and Analysis ........................................................................................8 3.Procurement Risk Analysis ...................................................................................................2 Most of Procurement risk rating is Substantial. ......................................................................2 4. Procurement Objectives ......................................................................................................4 5. Recommended Procurement Arrangement/Approach for the Project..................................5 6. Preferred Arrangement for Low Value Low Risk Activities...................................................5 7. Summary of PPSD to Support the Preparation of the PAD by the Bank...............................5 Annex 1: PPSD Annexes ..........................................................................................................7 Annex 2: Procurement Plan .....................................................................................................7 PPSD for the first phase of the PRIME program 1. Project Overview Country: Ethiopia Power Sector Reform Investment and Modernization in Full Project Name: Ethiopia (PRIME-1) (P176731) Total Finance ($ 500.00 Million): Project Number: P176731 Summary of Project The development objective is to improve the reliability Development and capacity of the electricity network in 72 select Objectives towns and augment transmission with 14 new substations and lines, while modernizing some aspects of the electricity systems. 1.1.Project Description  To achieve universal access, energize faster economic growth, and establish Ethiopia as a regional electricity hub, the sector utilities have identified large investment needs.  In parallel to above investments, the PRIME program will support a reform trajectory encompassing structural and operational reforms.  Structured as an MPA and implemented in synergy with other sector engagements, the PRIME program will deliver a leap-forward in the electricity sector through advancement of all elements of the value chain.  Acceleration in rate of electrification will be synchronized with expansion of medium voltage and high voltage networks to improve the quality and reliability of supply while creating space The PRIME Program will facilitate private investments in brownfield hydro rehabilitation as well as non-hydro renewable energy by leveraging global climate finances for upstream resource establishment.  Structured as an IPF with PBCs, the PRIME-1 project will set the stage for structural and operational reforms through upfront adoption of an electricity sector reform roadmap. Implementation of specific reform actions and performance improvement steps will be supported through a combination of technical assistance and Performance-Based Conditions (PBCs). Investments under prime-1 will cover distribution rehabilitation, transmission strengthening, and risk mitigation measures to support private investments in non-hydro renewable energy. 1.2. Project Development Objectives The project development objective is to increase access to electricity and improve the reliability of electricity supply in Ethiopia in a climate-resilient and financially sustainable manner. 1.3. PDO Level Results Indicators A summary of EEU's results indicators for PRIME 1 project is shown in Table 1. Table 1 – EEU’s PDO Level result indicators PPSD for the first phase of the PRIME program Outcome Indicator Strengthen and • Interruption frequency per 100km MV network length in expand electricity project areas (Number) network • People provided with new or improved electricity services (Number)* Support power • Ratio of EEU's Cash Revenues to Accrued Expenditures sector reforms (for (including depreciation and interest cost) electricity • PEA has approved a new four-year cost recovering tariff distribution) trajectory for EEU • EEU Board has adopted and PEA has approved a new rolling three-year Least Cost Distribution Expansion Masterplan • EEU has produced segregated audited annual accounts for its PSO activities and commercial business 1.4. Project Components  EEU is responsible only for the implementation of Component 1, Distribution MV Network Rehabilitation and Modernization.  Rehabilitation and upgrading of distribution network in 72 key towns that are now grid-connected.  modernization of the Addis Ababa city distribution transformer metering system as a part of the ongoing EEU revenue protection program (RPP). EEU is already installing 1000 smart energy meters for Automatic Data Acquisition (ADA) for the purpose of centralized meter data logging and data analysis.  Engaging consultancy firms to assist in project preparation and implementation.  Engaging consultancy firms to assist EEU with structural and operational reforms as well as institutional capacity-building. • Support for Structural and Operational Reforms: The key structural reforms at EEU that will be supported are: (i) Segregation of Public Service Obligations (PSO) from commercial business of EEU, and (ii) Establishment of strategic business units (SBUs) along the regional EEUs. • operational reforms supported by this component are: (i) Tariff adjustments to reflect variations in inflation and currency exchange rate, and (ii) Least cost distribution expansion planning. • Support for Institutional Capacity Building: The key areas identified for program level institutional capacity building are project management, contract administration, procurement, and safeguards (including environment, social, gender equality, health, and safety aspects). Among others, an “Environmental and Social Risk Management Capacity Strengthening Program” and a “Fiduciary Institutional Capacity Strengthening Program” will be designed and implemented for EEU. This component will deploy Performance Based Conditions (PBCs) to track progress on specific structural and operational reforms relevant for EEU. The PBCs are aligned with the Theory of Change are aimed at: (i) securing adequate tariff revenues for EEU in face of fluctuations in inflation and currency exchange rate, (ii) PPSD for the first phase of the PRIME program achieving economically optimal investments based on robust least cost planning, and (iii) segregating PSO and commercial activities to allow explicit GoE support for the PSOs as well as improved utility commercial performance. The PBCs are based on operational and structural reform actions supported through the technical assistance and institutional capacity building activities. 1.5. Proposed Procurement Contract Summary  the majority of project costs are incurred by the works contract (Totally 8 EPC contracts), which includes rehabilitation and modernization of the distribution MV network in seventy-two (72) towns in 11 regional states (IDA: US$ 173 million). This component will also support the continued modernization of the Addis Ababa city distribution transformer (DT) metering system as a part of the ongoing EEU revenue protection program (RPP).  Consultancies for Preparatory Activities (expenses will be covered from ADELE Project)  Consultancies for Project Management Activities and consultancy for Performance Based Conditions (PBCs) to track progress on specific structural and operational reforms relevant for EEU (IDA: USD 11 Million).  The PBCs are aligned with the Theory of Change are aimed at i) securing adequate tariff revenues for EEU in face of fluctuations in inflation and currency exchange rate, ii) achieving economically optimal investments based on robust least cost planning, and iii) segregating PSO and commercial activities to allow explicit GoE support for the PSOs as well as improved utility commercial performance. The PBCs are based on operational and structural reform actions supported through the technical assistance and institutional capacity building activities. 1.6. Legal/Policy Requirements  Ethiopia had Public Procurement laws and regulation.  EEU has its own procurement directive as its not governed by the public procurement laws and procedures.  the project uses the IPF instrument and hence procurement under the project will be carried out in accordance with the World Bank’s Procurement Regulations for IPF Borrowers; Procurement in Investment Project Financing for Goods, Works, Non-Consulting, and Consulting Services, dated July 1, 2016, and updated November 2020, (as amended from time to time).  The first 18 months PP of the project implementation is prepared (ANNEX 1). 2. Strategic Assessment of Operating Context and Borrower Capability 2.1 Operational Context 2.1.1. Governance aspects  EEU is organized to suit with the current governance structure of the country where the public in general and its customers (including consultants and suppliers) in particular are considered as collaborators for the success of the envisaged objectives. PPSD for the first phase of the PRIME program  EEU is sub-divided into a head office, regional, districts, and customer service center, whereas the regional offices reassigned geographically in order to align the political regions with the regions of the EEU and make them independent in decision-making and operate their own regions at executive level, but obtain support by the Head Office in Addis Ababa.  PRIME 1 procurement will be carried out at corporate level mainly by Procurement Logistic & Warehouse & Facility office of the Project Portfolio Management Directorate.  EEU follows ethics and anti-corruptions legal procedures of the government through which any individual including bidders has the right to inform to the Federal Ethics and Anti-Corruption Commission when it thinks or suspect that any corrupt practices happened/exist. Furthermore, EEU has ethics and anti- corruption directorate that collects and submit any corrupt practices to the concerned commission.  EEU also installed system and procedures of procurement including governance aspects like complaints handling and appeal systems in line with the requirement of the procurement proclamation of the Government of Ethiopia. 2.1.2. Economic Aspects 2.1.3. Sustainability Aspects  there are various high value works contracts, sustainability conditions will be set with regard to environmental, social, health and safety to comply with the world bank and the government safeguards policies and regulations. Project specific Environmental and Social Management Plans (ESMPs) and Resettlement Action Plans (RAPs) are developed and implemented during construction of the works and during procurement of goods and works, especially EPC procurements.  the Project will use the appropriate bidding documents (Bank’s Standard Procurement Documents) and contracts formats, to ensure satisfactory environmental, social, health and safety performance of contractors through incorporating contract clauses that reflect ,(1) Environment, Health and Safety (EHS); (2) Environmental and social monitoring by contractor; (3) Environmental and social liabilities (4) Grievance mechanism for workers (5), Child labour. In addition, the project have set of interventions to engage women in service delivery e.g. focusing on financing and business skill gaps of female enterprises and up skilling programs for solar engineers and at the beneficiary level by e.g. investigation of affordability constraints and product preferences of women versus men. 2.1.4. Technological Aspects  For Component 1, the project will finance on rehabilitation and upgrading of 6,183.28 of medium voltage (MV) lines and installation and upgrading of 5,569 distribution transformers across seventy-two (72) towns located in eleven regional states.  The project will maintain high technical standards for equipment and parts in alignment with the technical requirements used by EEU and conforming national quality and technical standards. PPSD for the first phase of the PRIME program 2.1.5. Conclusions on Operational context to be addressed through the procurement approach 2.2 Assessment of Client Capability and Project Implementation Unit (PIU) 2.2.1. Previous Experience (Experience implementing similar Projects and implementing World Bank Projects)  EEU has implemented and is currently implementing several electric access projects to electrify hundreds of towns and villages across the country (grid and off-grid) and distribution rehabilitation projects to rehabilitate and upgrade the distribution network of big cities and towns throughout the country.  Electricity Access (Rural) Expansion Project Phase I & Phase II (EAREP I & EAREP II), Sawala Key Afer Rural Electrification Project, and Eight (8) Major Cities Distribution Rehabilitation and Upgrading Project are among the completed and operational projects.  Some of the projects that are currently being carried out at various stages of completion include the Addis Ababa Transmission and Distribution Rehabilitation and Upgrading Project (AATDRUP), Ethiopian Electrification Program (ELEAP), Distributed Electricity and Lighting in Ethiopia (ADELE), and Six Towns Distribution Network Rehabilitation and Upgrading Project (ENREP Additional Financing).  During the execution of these projects an international consultant has been hired to assist the PIU’s in the course of the project execution.  There were no cases of mis-procurement, internal administrative and governance issues. 2.2.2. Need for hands-on support No separate and dedicated extended hands-on support is envisaged for EEU. 2.2.3. Contract management capacity and capability;  EEU is implementing similar distribution expansion and strengthening activities under the Electricity Network Reinforcement and Expansion Project (ENREP) and Access to Distributed Electricity and Lighting in Ethiopia (ADELE) project.  EEU is responsible for conducting demand assessments, feasibility studies, preliminary technical design, and procurement for distribution network strengthening, as well as expanding electricity access by providing new connections.  To address the geographical spread of the project activities across 72 towns, EEU has organized a two-tier PIU structure. There will be a central team led by a project manager and with members specializing in procurement, distribution planning, electrical engineering, civil design, environment, social, safety, and gender aspects. The PIU may also include regional teams led by sub-project managers and comprising members with relevant expertise. The central team will also be responsible for the modernization activities, as well as hiring and managing all consultancy contracts for project management support, sector reform, and capacity building.  The project implementations units (PIU) are the ones which are mainly responsible for overall contract management works of the contracts, together with the procurement units. Contracts are implemented in accordance with the terms and conditions of the specific contract, corrective measures and acceptable deviations are also implemented as per the contract conditions.  Project implementations units (PIU) together with the procurement units at PPSD for the first phase of the PRIME program corporate level or PMO directorate monitor and evaluate the progress of the contracts in order to ensure that contracts are executed on time to meet the contract schedules. 2.2.4. Complaints Management and Dispute Resolution Systems ICB procurement-related complaints shall be handled in accordance with paragraphs 3.26-3.31 of the Bank's Procurement Regulations, while NCB procurement-related complaints shall follow clause 41 of the EEU's 2013 Procurement Directive. 2.2.5. Procurement Capacity  EEU has two procurement units at corporate level, the Procurement and Facility Directorate responsible to the CEO and mainly tasked to procure operational procurements. The second one is the Project Procurement, Logistics and Warehousing Facilities tasked for projects procurement under the Project Portfolio Management Directorate which in turn is responsible to the CEO.  There are also procurement units within the 13 Regional and 28 District Offices with various delegation levels.  Most of the ICB and NCB procurements have been carried out at corporate level, while the EEU Regions execute only small-value procurements.  The reason for the centralization of the procurement to the two procurement offices at corporate level is economy of scale from packaging and consolidation of procurement capacity. Hence, PRIME 1 will be dominantly procured at Corporate level. The Project Portfolio Management Directorate which has a good experience in Grid and Off-grid procurements will handle PRIME 1 procurement.  The Procurement & Facility Directorate at the head office is staffed with fourteen (14) procurement proficient staffs for the proper delivery of contract with respect to time and quality of delivery. The assigned staffs have a minimum of BA Degree and most of them are familiar with World Bank and other development partners procurement guidelines.  The Project Portfolio Management Directorate (PMO)'s Procurement, Logistics, and Warehousing Facilities office consists of three working units: foreign procurement, local procurement, and logistics and warehousing. The procurement units are staffed with thirteen (13) proficient staff with different disciplines consisting of electrical engineers, procurement specialists, procurement officers and two procurement managers with a minimum of BA Degree, ample procurement experience, and training in World Bank and other development partners procurement guidelines  EEU has a good procurement planning system with appropriate templates. Each procuring unit at the corporate and regional level of EEU, prepare annual procurement plan together with its annual work plan and budget at the beginning of each year, and procurement is conducted based on the annual procurement plan. The Procurement Plan is prepared along with a reliable pre- tender estimate by each corporate and regional procuring unit, and approved by the CEO before the commencement of the new financial year. Detailed Technical specifications of procurement items are prepared either by the Engineering and Quality Directorate or by Project Portfolio Management (PMO) planning & engineering office, depending upon the required procurement and source of finance before procurement initiation. EEU uses the same type of construction materials specifications and details at the corporate and regional levels for harmonized and compatibility requirement. PPSD for the first phase of the PRIME program  EEU has “General and Financial Delegation of Power (GFDP)-OP/EEU/04-028” manual, which comprehensively provide the procedures for expediting the decisions making process and controlling of procurement transactions. SWOT Analysis The SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis that can support EEU’s Capability assessment is shown below: - Strength Weakness  EEU is implementing similar distribution  Despite the procurement plan, the expansion and strengthening activities procurement process takes longer than such as ENREP, ELEAP and ADELE. expected.  Existence of Newly established PIU focused to oversee the Project implementation.  Existence of well qualified and experienced procurement staff and FMT to implement the project  Familiarization of staffs with world bank procurement regulations  Commitment to perform each procurement based on the approved procurement plan  Smooth relationship and close contact with the World Bank staff for implementing the program successfully.  Ability of the EEU to utilize the planned budget of the project ahead of project Opportunities period expiration. Threats  Exposure to international market that can  Increasing costs of local commodities improves international procurement such as cement, sand, etc., increase in capacity labor costs, and increase in transportation costs.  Good number of international contractors are participating & bidding for EPC  Probable market instability in terms of variations in price and foreign exchange  Through a wide range of capacity-building rate. programs, EEU will have an opportunity to strengthen both its organizational  Some suppliers do not deliver goods capacity and staff capabilities. and services as per the agreed contract period  Enhanced public awareness on the importance of distribution rehabilitation & upgrading works 2.2.12. Conclusions on Client Capability and PIU Assessment 2.3 Market Research and Analysis  An analysis of key focus areas for procurement under the project and its markets was carried out as part of the preparation of this PPSD.  As a starting point, the information obtained from EEU's previous experience and its track record, for similar Projects/contracts, in similar circumstances is used for market analysis. PPSD for the first phase of the PRIME program  Consequently, experiences and track records of previously executed World Bank financed project (ELEAP) and African Development Bank (AfDB) financed project procurements for 12 and 25 Solar Mini-grids generation plants each of them consists of six (6) lots respectively were examined to understand whether the market is capable to meet EEU’s needs including typical experience levels, package sizes, and financial performance.  The outcome of the assessment shows that, a total of Thirty five (35) bidders from nine (9) different countries (Italy, China, Philippines, Israel, Germany, Spain, United Kingdom, Korea, and India) and a total of Thirty seven (37) bidders from seven (7) different countries (France, China, Spain, Italy, India, United Kingdom (UK), and Korea) had submitted their offers before/on the deadline of the bid submission for the electrification of twelve (12) and twenty- five (25) towns/villages respectively for solar mini-grids.  The market analysis carried out on both contract procurements shows that an average of six (6) bidders had submitted their offers for a single lot. This reflects the competitiveness of the market, and availability of worldwide potential of EPC contractors that are interested to participate in the Ethiopian markets, even though off-grid solar Mini-grid solutions under this scale is new to EEU, as well as to the country. 2.3.1. Supply Positioning Model Supply positioning and supplier preferencing are used to conclude market analysis, supply positioning is a tool to help determine the appropriate level of analysis and focus for each contract within the Project. It will also help estimate how much time, effort, and due diligence is required for each contract. Furthermore, supply positioning is used to identify where EEU should focus its effort, and in what manner. Each procurement packages are mapped in the Supply Positioning Model. These models place the packages/procurements in one of the following four named quadrants Proposed Procurement Packages The PRIME 1 project will be implemented in Seventy-Two towns located in eleven regional states. The packaging considers availability of bidders, products or services which can be availed by same provider, adequacy of size for optimum competition, location, seasonality of products and services and other commercial and legal considerations. Wherever, the location and workload is envisaged to attract foreign bidders, contracts are packaged as EPC. There are eight contract packages and nine clusters (lots) comprising these 72 towns. ANNEX 2 lists these towns together with their MV networks that need to be rehabilitated, along with the number of transformers that need to be upgraded. ANNEX 3 displays the specific packaging. As indicated below, there are a total of 23 procurement packages under PRIME 1.: - - Package 1 - EPC for Network strengthening to improve the reliability of supply in ten towns of Amhara Regional State. The scope of the work includes rehabilitation and expansion of 847.39 km of medium voltage (MV) lines and installation and upgrading of 758 distribution transformers (US$ 26.17 million). The overall risk rating is Substantial. - Package 2 - EPC for Network strengthening to improve the reliability of supply in nine towns of Amhara Regional State. The scope of the work includes rehabilitation and expansion of 774.6 km of medium voltage (MV) lines and installation and upgrading of 706 distribution transformers (US$ 24.24 million). The overall risk rating is Substantial. PPSD for the first phase of the PRIME program - Package 3 - EPC for Network strengthening to improve the reliability of supply in six towns of Oromia Regional State. The scope of the work includes rehabilitation and expansion of 807.53 km of medium voltage (MV) lines and installation and upgrading of 690 distribution transformers (US$ 24.25 million). The overall risk rating is Substantial. - Package 4 - EPC for Network strengthening to improve the reliability of supply in ten towns of Oromia Regional State. The scope of the work includes rehabilitation and expansion of 764.21 km of medium voltage (MV) lines and installation and upgrading of 663 distribution transformers (US$ 26.1 million). The overall risk rating is Substantial. - Package 5 – EPC for Network strengthening to improve the reliability of supply in three towns of Benshangul Gumz Regional State, three towns of Gambela Reginal State, and four towns of Oromia Regional State. The scope of the work includes rehabilitation and expansion of 767.45 km of medium voltage (MV) lines and installation and upgrading of 650 distribution transformers (US$ 25.06 million). The overall risk rating is Substantial. - Package 6 – EPC for Network strengthening to improve the reliability of supply in eight towns of the SNNP Regional state. The scope of the work includes rehabilitation and expansion of 912.34 km of medium voltage (MV) lines and installation and upgrading of 849 distribution transformers (US$ 28.59 million). The overall risk rating is Substantial. - Package 7 - EPC for Network strengthening to improve the reliability of supply in eight towns of Tigray Regional state. The scope of the work includes rehabilitation and expansion of 546.59 km of medium voltage (MV) lines and installation and upgrading of 656 distribution transformers (US$ 19.33 million). The overall risk rating is Substantial. - Package 8 - (It is a combination of clusters 8 and 9) – EPC for Network strengthening to improve the reliability of supply of 11 towns in Afar (2), Somali (4), Sidama (3), and South West Ethiopia (2) Regional states. The scope of the work includes rehabilitation and expansion of 580.52 km of medium voltage (MV) lines and installation and upgrading of 452 distribution transformers (US$ 22.77 million). The overall risk rating is Substantial. - Package 9 – Procurement of consultancy service for project preparation period. This consultant provides Technical and Procurement Support Consultancy during the project preparation period. It reviews past experience in contract design and management for MV rehabilitation projects, Prepare technical design and bid documents for the 72 Towns MV Rehabilitation Project, and Support the procurement of Project Management Consultants (US$2 Million). The overall risk rating of this package is Moderate. - Package 10 – Consultancy service for project management (supervision, contract administration, etc.) of towns under packages 1 &2. In this project, the consultant facilitates the project implementation and is responsible for technical and safeguard issues, such as contract management, design approval, manufacturing, installation, payment certificates, testing, and commissioning (US$1.5 million). The overall risk rating of this package is Substantial. - Package 11 – Consultancy service for project management (supervision, contract administration, etc.) of towns under packages 3 &4. In this project, the consultant facilitates the project implementation and is responsible for technical and safeguard issues, such as contract management, design approval, manufacturing, installation, payment certificates, testing, and PPSD for the first phase of the PRIME program commissioning (US$1.5 million). The overall risk rating of this package is Substantial. - Package 12 – Consultancy service for project management (supervision, contract administration, etc.) of towns under packages 5&6. In this project, the consultant facilitates the project implementation and is responsible for technical and safeguard issues, such as contract management, design approval, manufacturing, installation, payment certificates, testing, and commissioning (US$1.5 million). The overall risk rating of this package is Substantial. - Package 13 – Consultancy service for project management (supervision, contract administration, etc.) of towns under packages 7 &8. In this project, the consultant facilitates the project implementation and is responsible for technical and safeguard issues, such as contract management, design approval, manufacturing, installation, payment certificates, testing, and commissioning (US$1.5 million). The overall risk rating of this package is Substantial. - Package 14 - Procurement of consultancy service for Environmental and Social Risk Management Capacity Strengthening Program: - Support for Gap Analysis and Design of ESRM Capacity Strengthening Program at EEU (US$ 0.75 Million). The overall risk rating of this package is Substantial. - Package 15 - Procurement of consultancy service for Capacity Building Support: The consultant performs ESMP preparation, ES screening and additional capacity building support (US$ 0.75 Million). The overall risk rating of this package is Substantial. - Package 16 - Procurement of consultancy service for Fiduciary Capacity Building Program Design Consultancy for EEU: Support for Gap Analysis and Design of Fiduciary Institutional Capacity Strengthening Program at EEU (US$ 0.75 Million). The overall risk rating of this package is Substantial. - Package 17 - Procurement of consultancy service for Preparation of NEP3.0: Review the experience from NEP2.0, identify gaps and solutions, and develop a Revised NEP3.0 (US$ 1.5 Million). The overall risk rating of this package is Substantial. - Package 18 - Procurement of consultancy service for the preparation and submission of proposals to the regulator to reflect the impact of changes in inflation and currency conversion rate. The tariff trajectory for the next four years will be adjusted annually (US$ 1 Million). The overall risk rating of this package is Substantial. - Package 19 - Procurement of consultancy service for the preparation and submission of Least Cost Distribution Expansion Masterplan to EEU board of Directors (US$ 1 Million). The overall risk rating of this package is Substantial. - Package 20 - Procurement of consultancy service for the accounting separation of Commercial and Public Service Organization (PSO) activities (US$ 1 Million). The overall risk rating of this package is Substantial - Package 21 – Procurement of 80 double cabin pick-ups for rehabilitation and upgrading of 72 towns (US$3.5 Million). The overall risk rating of this package is Substantial. - Package 22– Procurement of office furniture and facilities (Tables, chairs, shelves … etc.) for the establishment of PRIME 1 PIU (US$0.5 Million). The overall risk rating of this package is Moderate. PPSD for the first phase of the PRIME program - Package 23 – Procurement of laptops and desktop computers, printers copy and fax machines, etc.) for the establishment of Off-Grid Unit (US$0.6 Million). The overall risk rating of this package is Moderate. PPSD for the first phase of the PRIME program Estimated Cost: Low Estimated Cost: High Strategic Security Strategic Critical  Package 9 – Procurement of consultancy service for project  Package 1 - EPC for Network strengthening to preparation period. This consultant provides Technical and improve the reliability of supply in ten towns of Procurement Support Consultancy during the project Amhara Regional State. The scope of the work preparation period. It reviews past experience in contract includes rehabilitation and expansion of 847.39 km design and management for MV rehabilitation projects, of medium voltage (MV) lines and installation and Prepare technical design and bid documents for the 72 upgrading of 758 distribution transformers (US$ Towns MV Rehabilitation Project, and Support the 26.17 million). The overall risk rating is procurement of Project Management Consultants (US$2 Substantial. Million). The overall risk rating of this package is Moderate.  Package 2 - EPC for Network strengthening to  Package 10 – Consultancy service for project management improve the reliability of supply in nine towns of (supervision, contract administration, etc.) of towns under Amhara Regional State. The scope of the work packages 1 &2. In this project, the consultant facilitates the includes rehabilitation and expansion of 774.6 km project implementation and is responsible for technical and of medium voltage (MV) lines and installation and safeguard issues, such as contract management, design upgrading of 706 distribution transformers (US$ approval, manufacturing, installation, payment certificates, 24.24 million). The overall risk rating is testing, and commissioning (US$1.5 million). The overall risk Substantial. Risk or rating of this package is Substantial.  Package 3 - EPC for Network strengthening to Risk or Vulnerabili  Package 11 – Consultancy service for project management improve the reliability of supply in six towns of Vulnerability ty High (supervision, contract administration, etc.) of towns under Oromia Regional State. The scope of the work High packages 3 &4. includes rehabilitation and expansion of 807.53 km  Package 12 – Consultancy service for project management of medium voltage (MV) lines and installation and (supervision, contract administration, etc.) of towns under upgrading of 690 distribution transformers (US$ packages 5&6. 24.25 million). The overall risk rating is Substantial.  Package 13 – Consultancy service for project management (supervision, contract administration, etc.) of towns under  Package 4 - EPC for Network strengthening to packages 7 &8. improve the reliability of supply in ten towns of Oromia Regional State. The scope of the work  Package 14 - Procurement of consultancy service for includes rehabilitation and expansion of 764.21 km Environmental and Social Risk Management Capacity of medium voltage (MV) lines and installation and Strengthening Program: - Support for Gap Analysis and upgrading of 663 distribution transformers (US$ Design of ESRM Capacity Strengthening Program at EEU 26.1 million). The overall risk rating is (US$ 0.25 Million). The overall risk rating of this package is Substantial. Substantial.  Package 5 – EPC for Network strengthening to  Package 15 - Procurement of consultancy service for improve the reliability of supply in three towns of Capacity Building Support: The consultant performs ESMP Benshangul Gumz Regional State, three towns of preparation, ES screening and additional capacity building Gambela Reginal State, and four towns of Oromia support (US$ 0.75 Million). The overall risk rating of this Regional State. The scope of the work includes package is Substantial. rehabilitation and expansion of 767.45 km of medium voltage (MV) lines and installation and upgrading of 650 distribution transformers (US$ 25.06 million). The overall risk rating is PPSD for the first phase of the PRIME program Estimated Cost: Low Estimated Cost: High  Package 16 - Procurement of consultancy service for  Package 6 – EPC for Network strengthening to Fiduciary Capacity Building Program Design Consultancy for improve the reliability of supply in eight towns of the EEU: Support for Gap Analysis and Design of Fiduciary SNNP Regional state. The scope of the work includes Institutional Capacity Strengthening Program at EEU (US$ rehabilitation and expansion of 912.34 km of 0.75 Million). The overall risk rating of this package is medium voltage (MV) lines and installation and Substantial. upgrading of 849 distribution transformers (US$  Package 17 - Procurement of consultancy service for 28.59 million). The overall risk rating is Substantial. Preparation of NEP3.0: Review the experience from NEP2.0,  Package 7 - EPC for Network strengthening to identify gaps and solutions, and develop a Revised NEP3.0 improve the reliability of supply in eight towns of (US$ 0.75 Million). The overall risk rating of this package is Tigray Regional state. The scope of the work Substantial. includes rehabilitation and expansion of 546.59 km  Package 18 - Procurement of consultancy service for the of medium voltage (MV) lines and installation and preparation and submission of proposals to the regulator to upgrading of 656 distribution transformers (US$ reflect the impact of changes in inflation and currency 19.33 million). The overall risk rating is conversion rate. The tariff trajectory for the next four years Substantial. will be adjusted annually (US$ 1 Million). The overall risk  Package 8 - (It is a combination of clusters 8 and 9) rating of this package is Substantial. – EPC for Network strengthening to improve the  Package 19- Procurement of consultancy service for the reliability of supply of 11 towns in Afar (2), Somali preparation and submission of Least Cost Distribution (4), Sidama (3), and South West Ethiopia (2) Expansion Masterplan to EEU board of Directors (US$ 1 Regional states. The scope of the work includes Million). The overall risk rating of this package is Substantial. rehabilitation and expansion of 580.52 km of  Package 20 - Procurement of consultancy service for the medium voltage (MV) lines and installation and accounting separation of Commercial and Public Service upgrading of 452 distribution transformers (US$ Organization (PSO) activities (US$ 1 Million). The overall risk 22.77 million). The overall risk rating is rating of this package is Substantial. Substantial. Tactical Acquisition Tactical Advantage  Package 22– Procurement of office furniture and facilities  Package 21 – Procurement of 80 double cabin pick- Risk or (Tables, chairs, shelves … etc.) for the establishment of PRIME ups for rehabilitation and upgrading of 72 towns Risk or 1 PIU (US$0.5 Million). The overall risk rating of this package is (US$3.5 Million). The overall risk rating of this Vulnerabili Moderate. Vulnerability package is Substantial. ty Low  Package 23 – Procurement of laptops and desktop computers, Low printers copy and fax machines, etc.) for the establishment of Off-Grid Unit (US$0.6 Million). The overall risk rating of this package is Moderate. Low Estimated to Cost / Value: Low Estimated to Cost / Value: High High PRIME-1 PPSD 2.3.2. Market Sector Dynamics  An important procurement activity in the project is network rehabilitation and expansion for 72 towns located in eleven regional states to strengthen and improve the reliability of electric supply.  ENREP, ADELE Addis Abeba and ADELE Ten Towns bidding offers showed that almost all participants were foreign contractors, which indicates the market is dominated by them.  The potential providers for Consultancy and Non-Consultancy Services will also have the opportunity in the project procurement, and the Country has a developed market for national and international consultants depending on the necessity and threshold limits. Many potential bidders both local and foreign will respond to invitation for bid for the procurement of Goods supply either through open national or international bidding, adequate competitions with desired quality will be achieved.  In general, Ethiopia had a dynamic market potential driven by the need to respond to the demand for goods, services and works in quantity, quality and level of technological development required by major investment projects including this project. 2.3.3. Supplier Preferencing Supplier Preferencing is one of the most useful tools in supporting market analysis to identify how a supplier views a Client (as a customer) and depending on this view, how the supplier is likely to behave. Through its application, EEU can identify and describe the typical approach suppliers will take to working with EEU based on their segmentation in the model. To determine the accuracy of the assessment, consideration was given to EEU’s previous experiences how suppliers respond to bids, the level of success and how suppliers react when there are implementation problems.  EEU has well developed relations with its suppliers, contractors and consultants.  It can be concluded that EEU has attractive business area for international and local existing suppliers, contractors and consultants and have potential to attract more.  As per past experience, there will be a good level of willingness to bid, and hence the corresponding level of effort the supplier will make in meeting EEU’s requirements is expected to be high. EEU also decided to apply viable market approaches that can help to influence the market and achieve the PDOs and Procurement Objectives. SOLOMON 0 PPSD for the first phase of the PRIME program Based on the analysis made above, the suppliers are classified as development, core, exploitable or nuisance, during which the World Bank’s PPSD template as shown in the table below, is used as a guideline Supplier’s Description Approach Arrangement Priority Development  Customer has  High  Nurture the Supplier nurtures potential attention Customer relationships,  Work Hard to  Secure further performs well and Exceed business provide incentives customer’s  Price using expectation “special” deals and Core  Exceptional  Supplier core  Proactive  marginal Look costingthe after service businesslevels Customer customer through Supplier seeks to “Lock-in”  Give high level of managemen excellent service customer service and t and delivery response  Retain and expand  Increase business Receptive profitability in to ‘strategic low key manner alliances’  Ensure ongoing  Seek to ‘Lock-in’ profitability customer through long term contracts SOLOMON 1 PPSD for the first phase of the PRIME program Exploitable  In unique  Normal  Drive for best price Supplier seeks position of Attention Maximize profit in short term strength the short-term advantage  Increase prices- reduce service costs  Seek short term Nuisance advantage  Little profit made  No attention  Give it low attention Prepared to risk Supplier gives  Customer losing Customer  Short term minimum difficult and/or contracts attention and expensive to  Withdraw from seeks to withdraw service business  Poor at paying bills  Provide poor service According to the classifications,  Supplier’s procurements are mapped as shown in ANNEX 4. theoverall objective: 2.3.4. Early Engagement of Suppliers, Contractors and Providers Early engagement conferences, questionnaires, etc. during the preparation process will be a good input to refine the procurement modality/strategy. As part of the inputs for EEU performance in its procurement activities, EEU has distributed questionnaire to thirty (30) suppliers and manufacturers of Electrical materials and equipment in which their feedback can help EEU to (i) improve its procurement process and practices (ii) improve the market's understanding of purchaser's needs, improve supplier competitiveness and, in the long term, increase the potential for improved value- for-money outcomes (iii) contribute to intelligence gathering about the market and its segments, and demonstrate commitment to good practices, openness and transparency (iv) a complaints management system provides suppliers with an avenue to escalate a complaint should the matter not be resolved at the procurement activity level. The analysis covered various aspects, ranging from demographic information to specific questions that utilized the Likert Scale to gauge their satisfaction levels regarding the bidding process and contract management in project procurement. Feedback on EEU's procurement performance based on performance surveys questionaries is shown in ANNEX 5. 3.Procurement Risk Analysis Most of Procurement risk rating is Substantial. Risk Description Mitigation Measures Time Frame 1. Governance Aspects SOLOMON 2 PPSD for the first phase of the PRIME program Corruption, collusion 1. Improve the complaint Throughout the project and Conflict of management system by properly life time interest handling complaints in a consistent, fair and transparent manner to the satisfaction of both the purchaser and to the supplier. Establish independent complaint handling system. 2. Conduct internal and external audits 3. Disclosure of information/open data More transparency in procurement can reduce corruption, make procurement more efficient and effective, and allow for more accountability. All laws and policies relating to procurement should be publicly available. The full text of any awarded contract as well as any modifications should be proactively posted online for public consumption. Summary information about each contract, such as awardees, amount, date, etc., should also be available as structured data. Information regarding procurement disputes should be available for all steps in the dispute resolution process, 2. Economic including the parties to the Aspects dispute, the complaint, and the resolution. 2.1. Financial Advance payment and progress Advance payment at the time 4. Code of ethics for staff of project commencement and mobilization payments release will be on time Progress payment throughout the project life time 2.2. Inflation, shortage Price variation clause to be used in Throughout the project of foreign all contracts exceeding 18 months currency life time 2.3. physical bid Provide adequate publicity to submission maximize the interest of bidders. challenges and Conduct virtual meetings and e- During bid floating period associated lack of mail bid submissions. competition 3. Sustainability Aspects SOLOMON 3 PPSD for the first phase of the PRIME program 3.1. Sustainable There are no specific Sustainable service/ Procurement requirements for the consideration of Project. life time cost 4. Technological Aspects 4.1. Technological The Technology requirements have Risks been studied. Developing institutional capacity in project management, contract Throughout the project administration, procurement, and life time safeguards (including environment, social, gender, health, and safety aspects) is essential. 5. Client Capacity EEU's experience, Establishment of a strong, well- Capacity and resourced, and dedicated Project capability Implementation Unit (PIU). Capacity challenges will be Throughout the project addressed through the provision of life time training and building of local, in- house technical and management capacity for the longer-term sustainability of the program. Limited knowledge Provide training on WB of World Bank Procurement Regulations, Contract Within one month of Procurement Management and STEP Project effectiveness. Regulations, Contract Not widely Management and Ensure that contract award notices are published widely In line with the publishing STEP. contract procurement plan award notices The Procurement Engage a Technical Assistance Guideline (Manual) Consultant to review and update and Standard the Procurement Guideline (Manual), Standard Specifications In the preparation period Specifications are and Standard Bidding Documents before the project is not updated, and effective Standard Bidding Documents should be standardized 4. Procurement Objectives In order to support the project development objectives, the project procurement is to achieve the following objectives: SOLOMON 4 PPSD for the first phase of the PRIME program (a) Procure suppliers/contractors, who have the capacity and experience to undertake contracts in connection with Distribution rehabilitation and strengthening works in the 72 towns. (b) Priorities the procurement transactions envisaged through the project, prepare and update the PPSD, and Procurement Plan periodically whenever substantial changes are made. (c) Timely completion of fit-for-purpose selection of capable contractors for Distribution rehabilitation and strengthening works in the 72 towns located in eleven regions of the country. (d) Timely and quality selection of consulting services to support EEU to have good project management, contracts management and monitoring system and capability to assure contracts are delivered with designed quality, timelines and at the right cost. 5. Recommended Procurement Arrangement/Approach for the Project 5.1. Package 1 to 8 (Contract 1 to 8) 5.1.1. Contract - Contract 1 to contract 8 - EPC for Network description strengthening to improve the reliability of supply in 72 towns located in 11 Regions . The total scope of the work includes rehabilitation and upgrading of 6,183.28 MV lines and the installation and upgrading of 5,569 distribution transformers. 5.1.2. Contract Category: Works 5.1.3. Contract Approach: - The contract approach is tabulated as below: - Attribute Selected Arrangement Justification Summary/Logic Specifications Conformance EEU has a comprehensive understanding of the requirements for distribution Materials and can describe it in detail. EEU will update its Standard Technical Specifications Sustainability Yes to EEUensure apply GoEquality social and of work and WB Requirements timely delivery. environmental standards as per the contract ESH assessment outputs. The project is targeting promotion of green energy products and is sound in terms of Contract Type EPC sustainability SOLOMON 5 PPSD for the first phase of the PRIME program Attribute Selected Arrangement Justification Summary/Logic Pricing and Costing Admeasurement The contract will base on Mechanism estimated quantities of items and contractual unit prices for each of these items. Payment is made based on the actual quantities and contractual unit prices Supplier Relationship Adversary Price Adjustments Adjusted Price The contract duration period is more than 18 months. Form of Contract WB Bank’s Standard (Terms and Conditions) Condition of Contract (World bank SPD for Plant, design, supply and installation will be used). Selection Method Requests for Bids (RFB) All requirements are specified. Selection Arrangement Not Applicable Market Approach A. Type of Competition – ICB Open International B. Number of Single stage/two envelope Envelopes/Stages – Single Envelope/single stage Pre /Post Qualification Post Qualification Evaluation Selection Rated criteria The most advantageious bidder Method Evaluation of Costs Adjusted Price Domestic Preference No Rated Criteria Applicable. Bidders will be evaluated based on their compliance to the conformance specification. The type of supply is not complex. 5.2. Package 9 to Package20 (Contract 9 to Contract 20) SOLOMON 6 PPSD for the first phase of the PRIME program 5.2.1. Contract - Contract 9 – Procurement of consultancy service description for project preparation period. This consultant provide Technical and Procurement Support Consultancy during the project preparation period. It reviews past experience in contract design and management for MV rehabilitation projects, Prepare technical design and bid documents for the 72 Towns MV Rehabilitation Project, and Support the procurement of Project Management Consutants Contract 10 – Consultancy service for project (US$2 Million). management (supervision, contract administration, etc.) of towns under contracts 1 &2. In this project, the consultant facilitates the project implementation and is responsible for technical and safeguard issues, such as contract management, design approval, manufacturing, installation, payment certificates, testing, and commissioning Contract 11 – Consultancy service for project (US$1.5 million). management (supervision, contract administration, etc.) of towns under contracts 3 &4. In this project, the consultant facilitates the project implementation and is responsible for technical and safeguard issues, such as contract management, design approval, manufacturing, installation, payment certificates, testing, and commissioning - Contract 12 – Consultancy service for project (US$1.5 million). management (supervision, contract administration, etc.) of towns under contracts 5&6. In this project, the consultant facilitates the project implementation and is responsible for technical and safeguard issues, such as contract management, design approval, manufacturing, installation, payment certificates, testing, and commissioning - Contract 13 – Consultancy service for project (US$1.5 million). management (supervision, contract administration, etc.) of towns under contracts 7 &8. In this project, the consultant facilitates the project implementation and is responsible for technical and safeguard issues, such as contract management, design approval, manufacturing, installation, payment certificates, testing, and commissioning - Contract 14 - Procurement of consultancy service (US$1.5 million). for Environmental and Social Risk Management Capacity Strengthening Program: - Support for Gap Analysis and Design of ESRM Capacity Strengthening Program at EEU (US$ 0.25 Million). SOLOMON 7 PPSD for the first phase of the PRIME program - Contract 15 - Procurement of consultancy service for Capacity Building Support : The consultant performs ESMP preparation, ES screening and additional capacity building support(US$ 0.75 Million). - Contract 16 - Procurement of consultancy service for Fiduciary Capacity Building Program Design Consultancy for EEU: Support for Gap Analysis and Design of Fiduciary Institutional Capacity Strengthening Program at EEU (US$ 0.75 Million). - Contract 17 - Procurement of consultancy service for Preparation of NEP3.0: Review the experience from NEP2.0, identify gaps and solutions, and develop a Revised NEP3.0 (US$ 0.75 Million). Contract 18 - Procurement of consultancy service - for the preparation and submission of proposals to the regulator to reflect the impact of changes in inflation and currency conversion rate. The tariff trajectory for the next four years will be adjusted annually (US$ 1 Million). The overall risk rating of this package is Substantial. - Contract 19 - Procurement of consultancy service for the preparation and submission of Least Cost Distribution Expansion Masterplan to EEU board of Directors (US$ 1 Million). The overall risk rating of this package is Substantial. - Package 20 - Procurement of consultancy service for the acco Contract unting separation of Commercial and Public Service Organization (PSO) activities (US$ 1 Million). The overall risk rating of this package is Substantial 5.2.1.Contract category: - Consultancy services 5.2.2.Contract Approach: - The contract approach is tabulated as below: - Attribute Selected arrangement Justification Summary/Logic Sustainability No Requirements Pricing and Costing Lump sum/time base Payments will be made for Mechanism measured outputs/deliverables instead of inputs Supplier Relationship Adversary Price Adjustments Fixed price SOLOMON 8 PPSD for the first phase of the PRIME program Attribute Selected arrangement Justification Summary/Logic Form of Contract (Terms WB Bank’s Standard and Conditions) Conditions Contract Selection Method Quality and Cost Based Selection (QCBS) Selection Arrangement Market Approach A. Type of Competition – Open International B. Number of Single stage/two envelop Envelopes/Stages Two Pre / Post Qualification stage –Two Request Envelope of for Expression To selects consultants who Interest (REOI) have the required capability and experiences to effectively carry out the contract. Evaluation Selection Quality and Cost Based Method Selection (QCBS); Evaluation of Costs Adjusted Price Domestic Preference No Rated Criteria YES Firm Experience, Methodology, Qualification and Competence of Key Personnel, Knowledge Transfer and Participation of Nationals. 5.3. Package 21 (Contract 21) 5.3.1. Contract description : - Procurement of 80 double cabins pick ups for PRIME 1 PIU 5.3.1. Contract category: - Supply of Goods 5.3.2. Estimated Cost:US$3.5 Million 5.3.3. Contract Approach: - The contract approach is tabulated as below: - SOLOMON 9 PPSD for the first phase of the PRIME program Attribute Selected Arrangement Justification Summary/Logic Specifications Conformance EEU has detailed specification of double cabin pickups from already procured vehicle and will update the specification to consider the latest available double cabin pickups. Sustainability Yes EEU apply government and WB Requirements social and environmental standards as per the contract ESH assessment outputs. The project is targeting promotion of green energy products and Contract Type Traditional is sound in terms of Pricing and Costing Schedule of Rates sustainability. The required quantities are Mechanism known, and unit prices are sought from suppliers. Supplier Relationship Adversary Price Adjustments Fixed price The contract duration period is less than 18 months. Form of Contract (Terms WB Bank’s Standard and Conditions) Conditions of Contract Selection Method Requests for Bids (RFB) All requirements are specified. Selection Arrangement Not Applicable Market Approach A. Type of Competition ICB Open International B. Number of Single stage/two envelop Envelopes/Stages Single Envelope/Single stage Pre / Post Qualification Post Qualification Evaluation Selection Lowest Evaluated Cost Lowest evaluated bidder will Method win Evaluation of Costs Adjusted Price Domestic Preference No SOLOMON 10 PPSD for the first phase of the PRIME program Attribute Selected Arrangement Justification Summary/Logic Rated Criteria YES Bidders will be evaluated based on their compliance to the conformance specification. The type of supply is not 5.4. Package 22 (Contract 22) complex. 5.4.1. Contract description: - Procurement of office furniture and facilities (Tables, chairs, shelves … etc) for the establishment of PRIME 1 PIU . 5.4.2. Contract category: - Supply of Goods 5.4.3. Estimated Cost:US$0.5 Million 5.4.4. Contract Approach: - The contract approach is tabulated as below: - Justification Attribute Selected Arrangement Summary/Logic [Specifications Conformance As it’s a simple procurement EEU will develop the required specifications in detail. Sustainability Yes EEU apply GoE and WB Requirements social and environmental standards as per the contact ESH assessment outputs. The project is targeting promotion of green energy products and is sound in terms of sustainability. Contract Type Traditional Pricing and Costing Schedule of Rates The required quantities are Mechanism known, and unit prices are sought from bidders. Supplier Relationship Collaborative Price Adjustments Fixed price The contract duration period is less than 18 months. SOLOMON 11 PPSD for the first phase of the PRIME program Justification Attribute Selected Arrangement Summary/Logic Form of Contract (Terms WB Bank’s Standard and Conditions) Conditions of Contract/ FPPA condition of Contract could be used Selection Method Requests for Bids (RFB) All requirements are specified. Selection Arrangement Not Applicable Market Approach A. Type of Competition NCB Open National B. Number of Envelopes/Stages - Single Envelope/Single Stage Pre / Post Qualification Post Qualification Evaluation Selection Lowest Evaluated Cost Lowest evaluated bidder Method will win Evaluation of Costs Adjusted Price Domestic Preference No Rated Criteria YES Bidders will be evaluated based on their compliance to the conformance specification. The type of supply is not complex. 5.5. Package 23 (Contract 23) 5.5.1. Contract description: - Procurement of laptops and desktop computers, printers copy and fax machines, etc) for the establishment of PRIME 1 PIU. 5.5.2. Contract category: - Supply of Goods 5.5.3. Estimated Cost: US$0.6 Million 5.5.4. Contract Approach: - The contract approach is tabulated as below: - Justification Attribute Selected Arrangement Summary/Logic Specifications Conformance As it’s a simple procurement EEU will develop the required specifications in detail. SOLOMON 12 PPSD for the first phase of the PRIME program Justification Attribute Selected Arrangement Summary/Logic Sustainability Yes EEU apply GoE and WB Requirements social and environmental standards as per the contract ESH assessment outputs. The project is targeting promotion of Contract Type Traditional green energy products and Pricing and Costing Schedule of Rates is Thesound in terms required of quantities are Mechanism sustainability. known, and unit prices are sought from suppliers. Supplier Relationship Collaborative Price Adjustments Fixed price The contract duration period is less than 18 months. Form of Contract (Terms WB Bank’s Standard and Conditions) Contract FPPA condition of Contract could be used Selection Method Requests for Bids (RFB) All requirements are specified. Selection Arrangement Not Applicable Market Approach A. Type of Competition – NCB Open National B. Number of Envelopes/Stages - Single Envelope/ Single stage Pre / Post Qualification Post Qualification Evaluation Selection Lowest Evaluated Cost Lowest evaluated bidder Method will win Evaluation of Costs Adjusted Price Domestic Preference No Rated Criteria YES. Estimated Procurement Contract Category Cost Million Approach and USD Method SOLOMON 13 PPSD for the first phase of the PRIME program To BE FILLED WHEN AVAILABLE. 7. Summary of PPSD to Support the Preparation of the PAD by the Bank In the PPSD, a major portion of the project procurement arrangements are specified in EPC model for MV lines rehabilitation and strengthen of 732 towns located in 11 regional states of the country. EPC models help to make a single point responsibility through transferring substantial amount of the project risk to Contractors/Suppliers. This also helps to achieve VfM through quality of work and time managements in the overall procurement processes till project completion and handover. EPC model also reduces the Client administrative efforts that can be lost through procurement process and contract administrations. On the contrary, EPC models also might have a risk of high development cost that comes through total responsibility by EPC contractors. The Client practical experiences taken from the previous projects are also considered during development of the procurement approaches. In order to avoid potential time and cost overruns during contract implementation, extensive mitigation measures must be developed to strengthen the institutional capacity of EEU so as to prevent potential time and cost overruns. PPSD includes mitigation measures that address procurement, contract management, internal control and oversight system development for EEU. The World Bank will provide oversight of procurement activities through prior and post reviews, The details of the procurement review/oversight are defined in the Annex II of the Procurement Regulations for borrowers. procurement post review will be conducted periodically using sample contracts. The sample contracts for procurement post reviews will be selected based on defined project risk level. The following will be subject to prior review of the World Bank regardless of the method of selection: PRIOR REVIEW THRESHOLD World Bank’s Prior Review Type of Procurement Threshold Works (including EPC, supply and installation All procurements estimated to cost works, and public-private partnership [PPP]) more than US$5 million All procurements estimated to cost Goods and Non-Consulting Services more than US$1.5 million All procurements estimated to cost Consulting Services (Firm) more than US$0.5 million All procurements estimated to cost Individual Consultant more than US$ 0.2 million SOLOMON 14 PPSD for the first phase of the PRIME program Annex 1: PPSD Annexes Annex 2: Procurement Plan SOLOMON 15 PPSD for the first phase of the PRIME program PART 2/2 ETHIOPIAN ELECTRIC POWER (EEP) PROJECT PROCUREMENT STRATEGY FOR DEVELOPMENT (PPSD) Decemebr, 2023 SOLOMON 16 PPSD for the first phase of the PRIME program Table of Contents 1. Program Overview ..............................................................................................................1 a) Program Description ......................................................................................................... ....1 b) Summary of Project Development Objectives (PDOs)....................................................... ....1 c) PDO Level Result Indicators .............................................................................................. ....2 d) Proposed Procurement Contract Summary....................................................................... ....2 e) Legal/Policy Requirements................................................................................................ ....4 2. Strategic Assessment of Operating Context and Borrower Capability ......................5 2.1. Operational Context ............................................................................................................5 2.2. Assessment of Client Capability and PIU .............................................................................8 2.3. Market Research and Analysis ..........................................................................................11 3. Procurement Risk Analysis ..............................................................................................14 4. Procurement Objectives ...................................................................................................16 5. Procurement Approach Options and Recommendation ..............................................16 6. Preferred Arrangement for Low-Value / Low-Risk Activities .....................................25 7. Summary of PPSD to Support the Preparation of PAD by the Bank .........................27 Annex 1: All Previous Similar Project Experience...............................................................28 Annex 2: Proposed Contract ..................................................................................................28 Annex 2: Risk Analysis Based on Previous Experience ......................................................28 Annex 4: Market Research & Analysis ..................................................................................28 Annex 5: Procurement Plan ....................................................................................................28 Annex 6: PPA Procurement Plan............................................................................................28 List of Tables Table 1: PDO Level Indicators ....................................................................................2 Table 2: Estimated Funding Needs for Component-2 (US$) .................................3 Table 3: Estimated Funding Needs for Component-3 (US$) .................................4 Table 4: Estimated Funding Needs for Component-4 (US$) .................................4 Table 5: Procurement Packages ..............................................................................11 Table 6: Procurement Risk analysis ........................................................................14 Table 7: Recommend Procurement Arrangement/ Approach for Works ...........16 Table 8: Recommend Procurement Arrangement/ Approach for Goods ...........18 Table 9: Recommend Procurement Arrangement/ Approach for Consultancy Services .......................................................................................................................20 Table 10: Recommend Procurement Arrangement/ Approach for Non- consultancy Services .................................................................................................23 Table 11: Procurement Details for Low-Value, Low-Risk Contracts ..................25 SOLOMON 17 PRIME-1 PPSD 1. Program Overview Country Ethiopia Full Project Name Power Sector Reform, Investment and Modernization in Ethiopia (PRIME-1) Total Finance 1,437.00 (Million US$) Project Number P176731 Summary of Project To increase access to electricity and improve the Objectives reliability of electricity supply in Ethiopia in a climate- resilient and financially sustainable manner. a) Program Description The WB discussed to appraise a program under the energy sector with the relevant GoE authorities and named the program as Power Sector Reform, Investment and Modernization in Ethiopia (PRIME-1). The PRIME-1 project will set the stage for structural and operational reforms through upfront adoption of an electricity sector reform roadmap. Implementation of specific reform actions and performance improvement steps will be supported through a combination of technical assistance and Performance-Based Conditions (PBCs). The project will rehabilitate the distribution network in existing grid-connected areas across 72 key towns. Fourteen new transmission lines and sub-stations will be constructed. The project will invest in modernization of transmission and distribution networks. It will also support risk- mitigation for competitively selected IPP projects, including drillings to establish geothermal resources and establishment of a Forex Liquidity Support Mechanism (FLSM). b) Summary of Project Development Objectives (PDOs)  To increase access to electricity and improve the reliability of electricity supply in Ethiopia in a climate-resilient and financially sustainable manner;  To strengthen and expand the electricity network, enable renewable energy generation, and support power sector reforms. SOLOMON 0 PPSD for the first phase of the PRIME program c) PDO Level Result Indicators TABLE 1: PDO LEVEL INDICATORS Outcome Indicators Strengthen and  Interruption frequency per 100km MV network length in project areas (Number) expand electricity  People provided with new or improved electricity services network (Number)* Enable  Geothermal resource established through drillings under the project (MW)# Renewable Energy  Expected tons of carbon dioxide equivalent (t CO2eq) reduced Generation per year # Support Power  Ratio of EEP's Cash Revenues to Accrued Expenditures (including depreciation and interest cost) sector Reforms  PEA has approved a new four-year cost recovering tariff (for electricity trajectory for EEP generation,  EEP Board has adopted and PEA has approved a new rolling Transmission and three-year Least Cost Generation and Transmission Expansion Distribution) Masterplan  EEP has produced segregated audited annual accounts for its Generation, Transmission, Trading, and System Operation businesses d) Proposed Procurement Contract Summary 1) Component-2: Transmission Network Strengthening and Modernization (IDA: US$ 281M) a) Sub-Component-2a: Constructing Fourteen new Transmission Lines & Substation Investments selected under this component form a part of the least cost transmission expansion study conducted by EEP. Based on the requirement of Distribution network strengthening across 72 towns under component-1, Ten new substations and associated transmission lines from the least cost transmission expansion study were identified as priority. In addition, four more transmission lines and associated substations were identified as high priority for the purpose of ensuring system reliability and carrying capacity. b) Sub-Component-2b: Support on Grid Modernization The Gird modernization package includes: System Defense Project (SDP), Digital Twin Project (DTP), and System Instrumentation Improvement Project (SIIP). The SDT will establish a dynamic model of the power system to replicate the responses from the real system; the SDP helps to improve grid resilience through effective and efficient system frequency response performance; and the SIIP will help improve the system SOLOMON 1 PPSD for the first phase of the PRIME program instrumentation by establishing an electrical equipment calibration and testing lab. c) Sub-Component-2c: Project Management Consultancy Support EEP will engage two consultants to ensure required support during initial project preparatory activities as well as during the project implementation. The scope of the first consultancy services will cover the support in finalizing engineering design, validation of technical specifications and assist in the preparation the ToR & bidding documents and evaluation. The scope of the second consultancy will cover designs review and approval, contract management, contract administration, supervision of works, quality control, follow up and monitoring the implementation schedule, payment certification, review of safeguards implementation etc. d) Sub-Component-2d: Support for Structural and Operational Reforms & Institutional Capacity Building Support for Structural and Operational Reforms In terms of structural reforms, support will be provided for accounting, functional, asset, and human resource separation across the Generation, Transmission, and System Operation functions of EEP. Support for Institutional Capacity Building: The key areas identified for program level institutional capacity building are project management, contract administration, procurement, and safeguards (including environment, social, gender equality, health, and safety aspects). TABLE 2: ESTIMATED FUNDING NEEDS FOR COMPONENT-2 (US$) EEP Total Activity IDA Amount Funding Amount 2a: Transmission Network Strengthening* 242,000,000 30,000,000 272,000,000 2b: Transmission System Modernization 17,000,000 0 17,000,000 2c: Project Management Consultancy 11,000,000 0 11,000,000 Support (including vehicles) 2d: Support for Structural and Operational 11,000,000 0 11,000,000 Reforms at EEP TOTAL 281,000,000 30,000,000 311,000,000 * Including 3% social and environmental costs and 10% physical and price contingencies 2) Component-3: Enabling Private Participation in RE Generation (IDA: US$ 52.6M) a) Sub-component-3a: Upstream Geothermal Site Preparation (IDA: US$ 52.6M) This sub-component will finance drilling and resource establishment at multiple locations in preparation for private sector-led development of a 100MW geothermal power generation program. The scope of this sub-component includes, completion of remaining ongoing activities at Aluto after the closure of GSDP on December 31, 2023 and exploration of additional wells drilling in Aluto Langano and Tehndaho areas in line with the draft geothermal development strategy that EEP is developing with Bank support. These wells are set out to demonstrate adequate geothermal resource for downstream SOLOMON 2 PPSD for the first phase of the PRIME program development of a large geothermal power generation. TABLE 3: ESTIMATED FUNDING NEEDS FOR COMPONENT-3 (US$) EEP Total Sub-Components IDA Amount Funding Amount 3a: Upstream Geothermal RE Parks 52,600,000* 8,000,000 60,600,000 Preparation TOTAL 52,600,000 8,000,000 60,600,000 * This includes US$ 22.6 million from the ongoing GSDP project that will be Commented [EH1]: @Mikul Bhatia last time i reallocated to the PRIME-1 project. checked with with Takeshi he was talking about 12 million. I will follow up, we got new table last week 3) Component-4: Technical Assistance & Institutional Capacity Building at PEA (IDA: US$ 5M) This component will provide technical assistance and institutional capacity strengthening support to enable PEA to effectively discharge its mandates and achieve its medium-term strategic plan. This will include analytical outputs, trainings, tools, and other services to address gaps in regulatory capacity for meeting its most important reform-related mandates. TABLE 4: ESTIMATED FUNDING NEEDS FOR COMPONENT-4 (US$) Component IDA Amount Total Amount Technical Assistance and Institutional Capacity 5,000,000 5,000,000 Building at PEA TOTAL 5,000,000 5,000,000 e) Legal/Policy Requirements EEP has its own procurement policy and manual defined in line with Ethiopia Public Procurement laws and regulation for government financed projects. EEP has updated its procurement manual in 2018 and new procurement reforms has been initiated. The Procurement manual has introduced improvements to the existing practices as well as new concepts. The procurement manual also provides for delegation of authority to increase the operational responsiveness of the procurement function; segregation of duties to ensure control, and accountability for the correct use of the authority and resources available. In addition to EEP’s and national procurement policy, the procurement method is also governed and guided under the procurement policy and manuals of the financers own procurement laws and procedures. Therefore, this Project will be carried out SOLOMON 3 PPSD for the first phase of the PRIME program procurement in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (Procurement in Investment Project Financing – Goods, Works, Non- Consulting and Consulting Services; July 2016, revised November 2017 and August 2018). 2. Strategic Assessment of Operating Context and Borrower Capability 2.1.Operational Context a) Governance Aspects Ethiopia’s power sector is underpinned by a broad policy, legal, and strategic framework and structured by the National Energy Policy (2013; updated in 2019). The Ministry of Water and Energy (MOWE) oversees planning, coordination, and monitoring of overall energy development. In addition, Petroleum and Energy Authority (PEA) formulates comprehensive legal framework to regulate the energy sector including determination of National Grid Tariff through Council of Ministers when it is submitted form EEP. Therefore, the energy market in Ethiopia is regulated which is not sufficiently cost reflective, so far. EEP is stated owned corporation organized under Public Enterprise Holdings and Administration Agency (PEHAA), where it is organized to suit with the current governance structure of the country where the public in general and its stakeholder in particular are considered as collaborators for the success of the envisaged objectives by the agency. Now adays there are Conflict-affected Situation in some regions where the projects are going to be implemented. This raised security concern is expected to delay half of the projects by six (6) months. Concerning disaster or emergency situation, there is no such significant emergency situation in all project implemented areas. There is legislative process that regulated the market/bidder in Ethiopia, where This Directive is issued by the Ministry of Finance Pursuant to Article 78/2 of the Ethiopian Federal Government Procurement and Property Administration Proclamation no SOLOMON 4 PPSD for the first phase of the PRIME program 649/2009 and Article 19 of the definition of powers and duties of the Executive Organs of the Federal Government of Ethiopia Proclamation No 471/2005/6 (as amended). b) Economic Aspects The current 10-Year Development Plan places strong emphasis on economic and infrastructure sectors, targeting agriculture, construction, trade, manufacturing, transport, energy, and technology innovation industries. For energy development, the main objectives presented include significantly increasing the electricity customer base by quadrupling it, expanding the coverage of grid-based electricity from around 35 percent to 96 percent, and reducing electricity losses by half. The overall focus of the energy development strategy is to expand high quality energy infrastructure and provide electricity access that is equitable, affordable, and reliable. This big economy of Ethiopia in East Africa has created huge investment opportunity that results in high competition and attractive market for international bidders. Due to low productivity in the agriculture sector, and particularly limited export in type and volume from the industrial sector, it is inhibiting the fulfillment of the national target for gaining Foreign Exchange to the expected level. Besides, growing demand for import of capital goods, foreign exchange availability is a challenge for businesses including local contractors. In relation to shortage of foreign currency, the government encourages domestic preference to motivate local businesses by forming partnership with international companies on supply of goods and service. The other challenge of economic aspect is High Inflation Rate that is hits around 30% currently after COVID and current active conflict in the country that limited easy movements of commodities in the country. In relation to this issue there is also a problem in Exchange Rate, where the ration between the free market and the regulated official bank rates is two folds. The GoE has recently introduced comprehensive economic reforms that would help to ease the country's pressing foreign currency shortage and minimize the gap between the two market. c) Sustainability Aspects Sustainability conditions will be set with regard to environmental, social, health and safety to comply with the world bank and the government safeguards policies and regulations. Project specific Environmental and Social Impact Assessment (ESIA) and SOLOMON 5 PPSD for the first phase of the PRIME program Resettlement Action Plans (RAPs) are prepared by the borrower. Based on this study, Environmental & Social Commitment Plan (ESCP), Environmental and Social Management Plans (ESMPs), Labor Management Procedure and other safeguard instrument is also expected to be prepared by the contractor. However, since Sustainable Procurement Requirements are not included in the employer requirements to address these issues, there is always a gap on the implementation. Therefore, strong requirement should include in the tender documents and the bidders has to be evaluated based on their Environmental and Social Performance. Life cost of some critical equipment such as transformers, circuit breaker procurements., is considered during procurement of those goods. This helps to ensure that adequate high-quality transmission and substation electrical equipment are procured through consideration of their life time costs (O&M cost, transformer losses, and other relevant efficiency targets). Therefore, additional Value-based Quality Standards has to be applied to widen the practice in the project. d) Technological Aspects This project uses frequently and rapidly evolving technologies like Optical Communication System, Substation Automation System, SCADA, Protection Systems, etc. which is partly dependent on variety of vendors in the market. In addition, System instrumentation infrastructure is going to be implemented in this program that is new to EEP. Therefore, there is high need of Knowledge Transfer to avoid continues dependency on the bidders. One of the technologies to be implemented in this program are EEP Power Defense System (governor twining, under-frequency, primary-Secondary & tertiary controlled.,) based on the outcome of Digital Twin Implementation, and also implementation of a new metering & instrumentation testing facilities for EEP to provide testing, maintaining and calibrating service to grid operation equipment. The success of those required grid modernization has some risk since the technology is new in the world and limited-service providers and there is no sufficient capacity in EEP. The other problem related to technology in this project is utilizations of Geospatial Information System (GIS) for Project Automation, Environmental and Social Impact Assessment, Assets Management, Stakeholder Management, etc. Therefore, in SOLOMON 6 PPSD for the first phase of the PRIME program relation to this information System management high consideration shall be given to deliver the project. e) Conclusions on Operational Context to be Addressed through the Procurement Approach Care drawn from Operational Context analysis to informed the procurement approach that is being designed and detailed in the PPSD. Risks are identified to be considered as part of Procurement Risk Management Plan, as illustrated hereafter.  National Gird Tariff: The energy tariff in Ethiopia is regulated national by the government. This tariff was set five years ago, however, due to inflation and high devaluation in hard currency, the current tariff is not cost reflective.  Conflict-affected Situation: In some project areas, there is active conflict that hinders the required Feasibility and ESIA study which is expected to delay half of the project beyond the plan.  Foreign Exchange Shortage: Shortage of foreign hard currency has limited some local contractors to participate on some projects since opening LC for import of goods are very hard to get.  High Inflation Rate: The inflation rate is very high for the last couple of years and it is expected to continue this year even, too.  Lack of Sustainable Procurement Requirements: Sustainable procurement requirements is not intercorporate in the tender document for compliance of Environmental and Social Safeguard compliance.  Value-based Quality Standards: Most of the procurement experience in EEP is least cost bidding which doesn’t consider rated-criteria for value.  Lack of Knowledge Transfer: There is rapid change on communication technologies and emerging challenges on cyber security. Therefore, the knowledge transfer on those technology is very limited not much expert on the areas.  Poor Application of GIS: one of the challenges for decision maker is there is no spatial information to decide on investment and clear follow up mechanism using geospatial information system 2.2.Assessment of Client Capability and PIU a) Experience of Implementing World Bank Projects and other Similar Projects Since its establishment in 2013, as given in its mandate, EEP has implemented a number of high value and complex projects like Hydro Power, Wind Power, SOLOMON 7 PPSD for the first phase of the PRIME program Geothermal Power Plants, Transmission lines, Substations. EEP also implementing similar projects under World Bank funding, including Electricity Network Reinforcement and Expansion Project (ENREP), Eastern Electricity Highway Project (EEHP), and Geothermal Sector Development Project (GSDP), Under Africa Development Bank Funding, Mekelle- Dallol and Semera- Afdera power supply for industrial development and access scale-up project, and Addis Ababa Transmission & Distribution Rehabilitation & Upgrading Project and Under Korean Exim Bank Funding Southern Extension of the National Electricity Grid Power Transmission Project. List of projects financed by the World Bank and other development partners are attached in Error! Reference source not found. The project procurement staffs have the necessary education and professional credentials, are familiar with the World Bank Procurement Regulation, and are relatively skilled. However, it is observed that there are still some limitations in implementing world bank financed projects such as understanding and application of banks safeguard instruments, poor procurement planning for full utilization of the funds on time, etc. b) Need for Hands-on Support EEP has established a well-organized and dedicated program office for Transmission Substation and Generation construction related projects. The program offices manage the projects in matrix organizational structure that can expand its project office presence depending on the anticipated increase in demand and work load for the implementations. These offices are responsible for the overall implementation and finally manage the infrastructure or outcomes of the program. The corporate planning office will assign dedicated personnel to coordinate and follow up the overall required preparation as per the set targets. With this action, EEP will be able to create a single window to organize and swiftly acquire information across the project offices excited under PRIM-I, analyse it, make choices, and convey the project status to the appropriate stakeholders. Therefore, we can conclude that there is NO need of request for Bank Hands-on Expanded Implementation Support. SOLOMON 8 PPSD for the first phase of the PRIME program c) Contract Management Capacity and Capability The procurement policy and procedure document of EEP provides sufficient instructions for managing and administering contracts, even though it requires some improvement in the understanding and application of the contract administration procedures. EEP has project implementation arrangements that is structured in Corporate Level, comprising Project implementations Units (PIUs) under Transmission and Generation Construction, Engineering and Procurement. EEP has developed contract management procedures but the reputation on Contract Management is not that much satisfactory to follow through commitments made during the procurement process that is contained in the contract award. Some of the problems are delays of procurement process due to tender document quality problem, completion of projects on schedule due to ineffective project management system, scope variation due to limitation of project preparation in details, etc. Therefore, further capacity building is required for enhancements of contract management and continuous growth of the organizational capability. Therefore, to address some existing Limitation on Contract Management, successive Capacity Building Programs are planned to successfully implement all PRIME programs in Multi-phase Approach. With the help of this capacity building programs, EEP has been able to improve its capacity in relation to important areas including financial management, governance, citizen participation, procurement, planning, contract management, safeguards/OHS, and gender. Thus, certification program is included in the capacity building program to address those required expertise areas. The other prominent problems in contract management are Undefined Delegated Authority for project manager. There are no clearly defined project manager authority levels including staffing decisions, budget management and variance, technical decisions, conflict resolution and escalation path for authority limitations. Therefore, to address this issue, full delegation and authority will be adopted for project manager in Project Charter. This practice is going to be started for the first time in EEP in PRIME projects implementation. SOLOMON 9 PPSD for the first phase of the PRIME program d) Complaint Management and Dispute Resolution System EEP has a Complaints Management and Dispute Resolution Systems that are credible, independent, and engender trust in all parties, through prompt/fair dealing of complaints. The EEP Procurement Manual outlines EEP's Complaint Handling Procedures that states, “A candidate or bidder who claims to be aggrieved or is likely to be aggrieved on account of EEP inviting a bid while conducting a bid proceeding may submit a complaint in the first instance in accordance with the procedures outlined here to the EEP Management.” e) Procurement Capacity The procurement department, which reports to the CEO of EEP management, is in charge of carrying out project procurement management. It has experience in managing high-value & complex project procurement activities financed by the World Bank, the African Development Bank, and other development partners. It is in charge of overseeing the coordination of procurement plan and process for all works, goods, and services that must be purchased and also hub for communications with the World Bank about procurement-related issues. The approach and arrangement of procurement and contract management in EEP is; Engineering is responsible for designing and preparing specifications and bidding documents, supervision of construction contracts, testing and commissioning of plants; Transmission and Generation Construction is responsible for project management with dedicated PIU for each projects; and Procurement is responsible to undertake successful fit for purpose procurement planning, procurement process, bid/proposal evaluation, supplier selection, and contract award. However, during execution of the above activities, there is Poor Project Implementation Arrangements between the Corporate Planning, Engineering, Procurement, and Project Implementation Unit. Although complex procurement tasks are being executed in a more efficient manner, EEP still has difficulties during the bidding process, particularly when conducting market research and meticulously drafting the employer's requirements (specifications). As a result, many technical explanations and addenda are asked from suppliers and bidders, which causes frustration and further delays in the SOLOMON 10 PPSD for the first phase of the PRIME program procedures. This problem is observed due to Lack of adequately defined Standard Performance and Compliance Specifications. f) Conclusions on Client Capability and PIU Assessment to be addressed Cconclusions are drawn from Client Capability and PIU Assessment analysis to inform the procurement approach that is being designed and detailed in the PPSD. Risks are identified to be considered as part of Procurement Risk Management Plan, as illustrated hereafter.  Limited Knowledge of World Bank Procurement Regulations & Contract Management: Limited understanding and application of banks safeguard instruments, poor procurement planning for full utilization of the funds on time, etc.  Limited Contract Management Capacity: delays of procurement process due to tender document quality problem, completion of projects on schedule due to ineffective project management system, scope variation due to limitation of project preparation in details, etc.  Clearly Undefined Delegated Authority: Unclearly defined project manager authority levels including staffing decisions, budget management and variance, technical decisions, conflict resolution and escalation path for authority limitations.  Poor Implementation Arrangements: Miss-coordination between Corporate Planning, Engineering, Procurement, and Project Implementation Unit.  Lack of adequately defined Standard Performance and Compliance Specifications: Standard performance and compliance specification gaps that results in many technical explanations and addenda are asked from suppliers and bidders, which causes frustration and further delays in the procedures. 2.3.Market Research and Analysis a) Procurement Packages Based on the identified specific contracts to be procured, a market research and analysis is conducted based on relative Risk and Value of each package that is given in Table-6 below. The market Research and Analysis for each package is given on Annex-5. TABLE 5: PROCUREMENT PACKAGES Procurement Procurement Package Package Name Description SOLOMON 11 PPSD for the first phase of the PRIME program Contract Packages under Work Package-1: Design, Supply, and Installation, test and Commissioning of fourteen Transmission (14) 132kV and 230kV transmission lines with a total estimated length Construction of 601.4km, clustered geographically into Five (5) Contracts Package-2: Design, Supply, and Installation test and Commissioning of fourteen Substation (14) 132kV and 230kV substations, clustered geographically into Five Construction (5) Contracts Package-3: Grid Design, Supply, and Installation test & Commissioning of a new Modernization Work metering & instrumentation testing facilities and deployment of System Defense Mechanism for EEP’s Grid Package-4: Design Design and build of Laboratory building for Instrumentation system & Build of Laboratory installation Block Package-5: Budling Design and Build of Civil Works (Access Roads, Camp, Casing Storage Exploration Ancillary Area, Drilling Sites) for Allalobad and Tendaho Drilling Site) Facilities Package-6: Water Supply and Installation of Water supply system for drilling purposes for Supply System all sites Contract Packages under Consultancy Services Package-7: Prepare final technical design and bid documents for the 14 T/L and Consultancy on S/S, and Prepare Term of Reference for Grid Modernization. Procurement Support Package-8: Contract Supervision and Contract management of Transmission and Substation Management construction, System Instrumentation Improvement, drilling operations Consultancy and well testing on exploration wells. Package-9: Gap assessment Organizational Design, HR Development Strategy, Consultancy on Environmental & Social Risk Management, Technical design, Capacity Gap procurement & contract management and design how to implement Assessment the study in short and medium term Package-10: Consultancy Service for securing adequate tariff revenues for EEP; for Consultancy on achieving economically optimal investments; for accounting functional, Structural Reform asset and human resource separation of Generation, Transmission, and System Operation functions; and for Power Sector Structural Reform Roadmap Study. Package-11: Capacity Building of EEP, MoF & MoM on Renewable Energy Consultancy support Investment; Capacity Building of PEA on Energy Sector Regulation, SOLOMON 12 PPSD for the first phase of the PRIME program on Institutional Capacity building of EEP’s rig Crew and data management capacity Building implementation, office software’s and hardware’s to strengthen new institutional capacity Package-12: Procurement of consultancy service for the implementation of twining Consultancy on SDT of EEP’s simulation systems called System Digital Twin-SDT, Package-13: Procurement of Consultancy services for data review and surface Consultancy on RE exploration and conceptual modelling at Adonshe of Aluto Study Package 14: Environmental and Social Safeguard instrument (ESIA & RAP) study for Safeguard Instrument all transmission and Substations projects and Geothermal Sites Study Contract Packages under Good Package 15: Supply Procurement of drilling consumables such as drilling chemicals, of Drilling casings, well heads, valves, testing equipment, etc. and spare part Consumables supply Package 16: Supply Procurement of sixteen (16) double cabins pickups, where four (4) for of Vehicles mobile work force of Metering & Instrumentation office, and four (4) for EEP Power defense system project, and eight (8) for allalobad and Dubti projects of Tendaho Contract Packages under Non-consultancy Services Package 17: Wells Procurement of drilling service (mobilization, de mobilization, Drilling Services operation and maintenance of rigs including spare parts) for drilling of three wells at Adonshe of Aluto and four wells at Allalobeda, four shallow and two deep wells at Dubti Package 18: Certification on Power Market and Trading, Project Management Certification Program Certification, Financial Management Certification, Environmental & Social Impact Certifications, FIDIC Certification, Human Resource Management Certification, Project Financing Certification, and Project Financing Certification b) Conclusion on the Market Analysis to be Addressed through Procurement Approach Conclusions are drawn from Market analysis to inform the procurement approach that is being designed and detailed in the PPSD. Risks are identified to be considered as part of Procurement Risk Management Plan, as illustrated hereafter. SOLOMON 13 PPSD for the first phase of the PRIME program  Supply of Vehicles: Due to shortage of hard currency, it is very challenging to open LC for import of those vehicles through local dealers. On the other hand, it is not allowed to import the vehicles other than the dealers.  Consultancy on SDT: It is a new emerging technology in the world with limited bidder and also new to even determine the required scope of works.  Certification Program: The certification program is direct and the availability of the required service is not yet clearly determined.  Imperfect Competition: The competition on price and some limitation on new entrant due to problems of specification and luck of clear and detail employer requirements. 3. Procurement Risk Analysis Procurement risks may occur while processing the procurement of required goods, works and service which affects the outcome of the processes. Therefore, identifying possible risks, evaluating, and proposing the mitigation plant to manage these risks that may impact the successful acquisition of goods, services, or works needs to be done. The following list of possible risks are identified as shown below in the table 4 considering that the value of procurement and the impact it has on the overall business goal of EEP. TABLE 6: PROCUREMENT RISK ANALYSIS Risk Description Description of Proposed Mitigation Responsib Time through the Procurement Process le Body Frame 1. Operational Context 1.1. National Gird  It is under study by the consultant EEP/EEU/PE In line with Tariff: to make the tariff cost reflective A the project  For the next coming tariff revision execution consultant will be hired plan 1.2. Conflict-  Priority is given to conflict free EHS, TSC, In line with affected Situation: areas, where their study is EEU the completed and to be executed procureme  Security management plan is nt plan prepared how to handle the situation 1.3. Financial  Advance payment and progress PIU; In line with mobilization payments release will be on time Procureme the nt and WB procureme nt plan SOLOMON 14 PPSD for the first phase of the PRIME program 1.4. Foreign  Announce local contractors to form Procureme In line with Exchange JV for foreign supply portion nt the Shortage: procureme nt plan 1.5. High Inflation  Price variation clause to be used in Procureme In line with Rate all contracts exceeding 18 months nt the procureme nt plan 1.6. Value-based  Put in place evaluation criteria to Engineering In line with Quality Standards consider of life cycle cost for major and the items like power transformer. Procureme procureme nt nt plan 1.7. Lack of  Strong E&S safeguard Instrument EHS, In line with Sustainable requirement shall be included in the Engineering the Procurement contract documents , procureme Requirements:  The engineering design shall be Procureme nt plan nt prepared to comply this requirement 1.8. Lack of  Capacity building is considered as Engineering In line with Technology one of the packages and the Transfer:  Procurement, engineering design Procureme procureme and specification will be assessed nt nt plan and fill the gap 1.9. Poor  It is planned to develop a platform Planning In line with Application of GIS: called Spatial Energy Management the System powered by ArcGIS procureme nt plan 2. Client Capacity 2.1. Limited  Continuous training and workshops Engineering Within one knowledge of WB on WB Procurement Regulations & and month of Procurement Contract Management Procureme Project Regulations & nt effectivene Contract ss. Management 2.2. Limited  Capacity building program on Procureme In line with Contract procurement and contract nt the Management management procureme Capacity nt plan 2.3. Clearly  Project Charter will be signed Engineering Within Undefined between the CEO and Project three Delegated manager stating the applied project months of Authority manager authority level Project effectiveess SOLOMON 15 PPSD for the first phase of the PRIME program 2.4. Poor  Consultant will be hired to study the Procureme In line with Implementation structural reforms and apply as per nt the Arrangements the design roadmap procureme nt plan 2.5. Lack of  Consultant will be hired to study the Engineering In line with adequately defined gaps and design the required , the Standard system Procureme procureme Performance and nt and PIU nt plan Compliance Specifications 3. Market Analysis 3.1. Supply of  Formation of joint venture between Procureme During Vehicles local dealer and manufacturer to nt procureme pay the foreign portion directly to nt the manufacturer & local portion to the dealer 3.2. Consultancy on  Procurement support consultant will PSP During SDT be hired to prepare the ToR in order project to define the scope and select best preparation service providers 3.3. Certification  It will be early identified to facilitate HR Within 6 Program the required certification program months 3.4. Imperfect  Consultant will be hired to support Procureme During Competition on procurement to address this gap nt, project Engineering preparation 4. Procurement Objectives In order to support the project development objectives, that procurement is to achieve the following objectives: (e) Identify potential suppliers based on quality, cost, reliability, and sustainability to support successful completion of the project. (f) Ensure the procurement of goods or services are compliant with contractual obligations, standards, and regulations (g) Manage the procurement process efficiently and effectively, and developing strong relationships with other groups with the organization (PIU) and Stakeholder (h) Develop an Effective risk Management and Mitigate potential risks associated with our procurement process and contract management. SOLOMON 16 PPSD for the first phase of the PRIME program 5. Procurement Approach Options and Recommendation The recommended procurement arrangement/approaches sited as follows: A. Procurement of Works TABLE 7: RECOMMEND PROCUREMENT ARRANGEMENT/ APPROACH FOR WORKS Estimated N Catego Contract Description Cost o. ry (in US$) 1 Design, Supply, Installation, test and Commissioning of Shashemene, Bale Robe, Bensa Daye, Durame & Works 34,117,418.8 Halaba Substations 4 2 Design, Supply, Installation, test and Commissioning of transmission line associated with substation of Works 22,428,278.7 Shashemene, Bale Robe, Bensa Daye, Durame 6 3 Design, Supply, Installation, test and Commissioning of Haromaya, Chelenko, Woliso, Limu Genet and Arsi Works 33,766,240.6 Robe Substations 6 4 Design, Supply, Installation, test and Commissioning of transmission line associated with substation of Works 25,032,779.6 Haromaya, Chelenko, Woliso, Limu Genet and Arsi 8 Robe 5 Design, Supply, Installation, test and Commissioning of Injibara, Kamashi and Debark Substations Works 29,021,966.0 9 6 Design, Supply, Installation, test and Commissioning of transmission line associated with substation of Works 39,327,800.7 Injibara, Kamashi and Debark 2 7 Design, Supply, Installation, test and Commissioning of Fiche, Mehal Meda and Wereilu Substations Works 25,676,132.9 5 8 Design, Supply, Installation, test and Commissioning of transmission line associated with substation of Works 32,629,382.2 Fiche, Mehal Meda and Wereilu 9 9 Design, Supply, and Installation test and Commissioning of a new metering & instrumentation testing facilities for Works 3,600,000.00 EEP to provide testing, maintaining and calibrating service to grid operation equipment (SIIP) 10 Design and build of Laboratory building for Instrumentation system installation by the other contractor Works 2,300,000.00 11 Design, Supply, and Installation test and Commissioning of EEP Power defense system (governor twining, under- frequency, primary-Secondary & tertiary controlled.,) Works based on the outcome of twining of EEP’s simulation 7,459,400.00 systems SOLOMON 17 PPSD for the first phase of the PRIME program 12 Supply and Installation of Water supply system for drilling purposes for all sites Works 8,000,000.00 13 Design and Build of Civil Works (Access Roads, Camp, Casing Storage Area, Drilling Sites) for Allalobad and Works 4,000,000.00 Tendaho Drilling Sites CONTRACT APPROACH FOR WORKS Selected Attribute arrangeme Justification Summary/Logic nt Specificati Conforman EEP with assistance of the consultant can describe the ons ce requirements for transmission line & Substation equipment and there is a little/no need for the supplier innovate. Sustainabil Yes EEP apply GoE and WB social and environmental standards ity as per the contract ESH assessment outputs. The project is Requireme targeting promotion of green energy products and is sound nts in terms of sustainability Contract EPC Type Pricing and Admeasure The contract will base on estimated quantities of items and Costing ment contractual unit prices for each of these items. Payment is Mechanism made based on the actual quantities and contractual unit prices Supplier Adversarial There are many suppliers/ contractors in the market and there Relationshi is strong competition in the market and also the scope of work p is standard. Price Adjustable The current market situation is not forecastable, and inability Adjustment to adjust the contract price in response to changing s circumstances can expose them to business risk. To avoid this, Contracts of shorter duration (less than eighteen (18) months) can also include similar provisions for price adjustments. Form of Bank’s Cost effective and readily available, Should secure competitive Contract Standard bids, well known to client staff and supplier, C (Terms and Contract Conditions) Terms and Conditions Selection Requests All requirements are specified. Method for Bids (RFB) Market A. Open- It provides an equal opportunity to all eligible prospective Approach Internati Bidders/Proposers to bid/propose for the required Goods, onal and Works, or Services. National B. single Actually, requested for bid is single –stage, single envelope, stage but the bank recommended to use single stage- two envelope for all open-international bid. SOLOMON 18 PPSD for the first phase of the PRIME program Two Envelope Pre /Post Post It is useful to checked and verify that a Bidder/Proposer that Qualificatio Qualificat would be recommended for contract award n ion has the capability and resources to effectively carry out the contract. Evaluation Adjusted Bid Adjustments of Bid price include arithmetic correction, any of Costs Price discounts, and other adjustments specified in the request for bids/ request for proposals Domestic No The provision of domestic preference will be included in the Preference bidding documents and applied in the evaluation of bids Rated Applicable. Rated-type criteria, that is, non-price attributes assessed with Criteria merit points, are used, when benefits may not be quantifiable. B. Procurement of Goods TABLE 8: RECOMMEND PROCUREMENT ARRANGEMENT/ APPROACH FOR GOODS Estimated No Categor Contract Description Cost . y (in US$) 1 Procurement of eight (8) double cabins pickups (four Goods 400,000.00 (4) for mobile work force of Metering & Instrumentation office and four (4) for EEP Power defense system project) 2 Procurement of 8 Double cabin pickups for allalobad Goods 400,000.00 and Dubti projects of Tendaho (0.4 MUSD). Overall risk rating is substantial. 3 Procurement of drilling consumables such as drilling Goods 6000,000.00 chemicals, casings, well heads, valves, testing equipment, etc. and spare part supply 4 Goods 225,000.00 Procurement of Energy Measuring Tools including office facilities, software, lab equipment, etc. 5 Procurement of Double cabin pickups for field Goods 1,250,000.00 inspection works Contract approach Selected Attribute arrangeme Justification Summary/Logic nt Specificati Conformance EEP with assistance of the consultant can describe the ons requirements for transmission line & Substation equipment and there is a little/no need for the supplier innovate. SOLOMON 19 PPSD for the first phase of the PRIME program Sustainabi Yes EEP apply GoE and WB social and environmental standards lity as per the contract ESH assessment outputs. The project is Requireme targeting promotion of green energy products and is sound nts in terms of sustainability Contract Traditional Type Pricing Admeasurem The contract will base on estimated quantities of items and and ent contractual unit prices for each of these items. Payment is Costing made based on the actual quantities and contractual unit Mechanis prices m Supplier Adversarial There are many suppliers/ contractors in the market and Relationshi there is strong competition in the market and also the scope p of work is standard. Price Adjustable The current market situation is not forecastable, and inability Adjustments to adjust the contract price in response to changing circumstances can expose them to business risk. To avoid this, Contracts of shorter duration (less than eighteen (18) months) can also include similar provisions for price adjustments. Form of Bank’s Cost effective and readily available, Should secure Contract Standard competitive bids, well known to client staff and supplier, C (Terms and Contract Conditions) Terms and Conditions Selection Requests for All requirements are specified. Method Bids (RFB) Market A. Open- It provides an equal opportunity to all eligible prospective Approach Internation Bidders/Proposers to bid/propose for the required Goods, al and Works, or Services. National B. single Actually, requested for bid is single –stage, single envelope, stage Two but the bank recommended to use single stage- two envelope Envelope for all open-international bid. Pre /Post Post It is useful to checked and verify that a Bidder/Proposer that Qualificatio Qualificatio would be recommended for contract award n n has the capability and resources to effectively carry out the contract. Evaluation Adjusted Bid Adjustments of Bid price include arithmetic correction, any of Costs Price discounts, and other adjustments specified in the request for bids/ request for proposals Domestic No The provision of domestic preference will be included in the Preference bidding documents and applied in the evaluation of bids Rated Applicable. Rated-type criteria, that is, non-price attributes assessed Criteria with merit points, are used, when benefits may not be quantifiable. C. Procurement of Consultancy Services SOLOMON 20 PPSD for the first phase of the PRIME program TABLE 9: RECOMMEND PROCUREMENT ARRANGEMENT/ APPROACH FOR CONSULTANCY SERVICES Estimated N Categor Contract Description Cost o. y (in US$) 1 Project E&S Support Consultancy: Conduct Consultan Environmental and Social Impact Assessment- cy 195,512.6 (ESIA) for Limu Genet, Bale Robe & Bensa Daye Projects 2 Project E&S Support Consultancy: Conduct Resettlement Action Plan (RAP) for Haromaya- Consultanc Chelenko, Bale Robe, Arsi Robe, Shashemene, y 580,737.5 Bensa Daye, Durame, Woliso, Limu Genet & Injibara Projects 3 Project E&S Support Consultancy: Conduct Environmental & Social Impact Assessment (ESIA) Consultanc and Resettlement Action Plan (RAP) for Kamashi, y 763,116.0 Debark, Fiche, Mehal Meda and Wereilu Projects 4 Technical and Procurement Support Consultancy: Review the final technical design Consultanc and bid documents for the 5 Trans Lines and Sub y 1,211,562.1 (2 Sub and 2 TL cont.), and Support on the procurement of main contractor selection. 5 Grid Modernization Support Consultancy-1: Consultan 588,096.3 Consultancy service to prepare bidding document cy and Support on Procurement of System Defense and System Digital Twin Project. 6 Grid Modernization Support Consultancy-2: Consultan 552,416.7 Consultancy service to prepare bidding document cy and Support on Procurement for of System Instrumentation Improvement Project. 7 Consultancy Service on Technical design, Consultan 281,721.8 Procurement and Contract Management: cy Consultancy service to carry out gap analysis and design of EEP's technical design, Procurement and contract management capacity strengthening program at EEP. 8 ESRM and Gender Program Design Consultancy Consultan for EEP: Consultancy service to carry out Gap cy 288,587.0 Analysis and Design of ESRM and Gender management Capacity Strengthening Program at EEP 9 HR Development Strategy and Roadmap: Consultan 200,000.00 Consultancy service to Identify capability gap and cy propose HR development strategy, Specify management development interventions, and Prepare the roadmap SOLOMON 21 PPSD for the first phase of the PRIME program 10 PSSRR Consultancy: Support for Options Analysis Consultan 288,500.00 and Stakeholder Consultation for Power Sector cy Structural Reform Roadmap 11 Capacity Development Program Consultancy Consultan 200,000.0 for Petroleum and Energy Authority: cy Consultancy service to carry out gap analysis and design of a program to build capacity of the Authority on energy sector 12 Procurement of consultancy service of Project Consultan 9,120,000.00 Supervision and contract Management services cy for Phase-1 Transmission & Substation Projects and SIIP Procurement of consultancy service of Project Consultan 5,553,000.00 Supervision and contract Management services cy for Phase-2 Transmission & Substation Projects 13 Organizational Design and Competency Consultan 2,349,162.00 Framework Development: Review EEP's Corporate cy and Business strategy and prepare Process Design, Propose structure, Job Design, Competency framework and Support the implementation 14 Certification on Power Market and Trading, Project Consultan 849,750.00 Management Certification, Financial Management cy Certification, Environmental & Social Impact Certifications, FIDIC Certification, Human Resource Management Certification, Project Financing Certification, and Project Financing Certification 15 Consultant Service for securing adequate tariff Consultan 350,000.00 revenues for EEP in face of fluctuations in inflation cy and currency exchange rate 16 Consultancy service for achieving economically Consultan 500,000.00 optimal investments based on robust least cost cy planning 17 Consultancy service for accounting, functional, Consultan 1,200,000.00 asset and human resource separation of cy Generation, Transmission, and System Operation functions 18 Procurement of Consultancy services for Consultan 7,000,000.00 supervision of drilling operations and well testing cy 19 Procurement of Consultancy services for data Consultan 3,000,000.00 review and surface exploration and conceptual cy modelling at Adonshe of Aluto SOLOMON 22 PPSD for the first phase of the PRIME program 20 Procurement of training services for rig crew, data Consultan 1,000,000.00 management implementation, office software’s cy and hardware’s to strengthen new institutional capacity 21 Procurement of consultancy service for Technical Consultan 2,800,000.00 Assistances and Capacity Building cy 22 Regulatory Reform Consultancy Service: Consultan 500,000.00 Consultancy Service to conduct Regulatory cy mandate assessment, Gap analysis and update existing regulatory instruments, Codes, Directives, Guidelines and provide legal and regulatory amendment recommendations. 23 Capacity Building Consultancy Service: Consultan 225,000.00 Consultancy service to provide inhouse capacity cy building trainings on developed/ updated regulatory instruments, tools/soft wares. CONTRACT APPROACH Selected Attribute Justification Summary/Logic arrangement Specifications Conformance The requirement already exists, there is a little/no need for the consultant innovate Sustainability Yes EEP apply GoE and WB social and environmental Requirements standards as per the contract ESH assessment outputs. The project is targeting promotion of green energy products and is sound in terms of sustainability Contract Type Traditional Pricing and Lump Sum/Time- EEP will use both Lump-Sum and Time Base Costing Base pricing and costing mechanism. Time-Base, Mechanism when it is difficult to define or fix the scope and duration, Like Supervision and Contract Management. Lump-Sum, This type of contract is used mainly for assignments in which the scope and the duration of the Services and the required output of the Consultant are clearly defined. Payments are linked to outputs (deliverables). Like ESIA and RAP, Supplier Adversarial There are many Consulting Firms/ Service Relationship Provider in the and also the scope of service also is standard. Price Adjustable The current market situation is not forecastable, and Adjustments inability to adjust the contract price in response to SOLOMON 23 PPSD for the first phase of the PRIME program changing circumstances can expose them to business risk. To avoid this, Contracts of shorter duration (less than eighteen (18) months) can also include similar provisions for price adjustments. Form of WB Bank’s WB Bank’s Standard Condition of Contract (World Contract Standard Condition bank SPD for selection of consultants will be used). (Terms and of Contract (World Conditions) bank SPD for selection of consultants will be used). Selection Request for All requirements are specified. Method Proposals (RFP) Market A. Open It provides an equal opportunity to all eligible Approach International prospective Bidders/Proposers to bid/propose for the required Goods, Works, or Services. B. Single-Stage, Two Envelope Evaluation Quality Cost Based Use the combination of the quality of the Selection Selection (QCBS) Proposal and the cost of the services. Method Evaluation of Adjusted Bid Price The current market situation is not forecastable, and Costs inability to adjust the contract price in response to changing circumstances can expose them to business risk. To avoid this, Contracts of shorter duration (less than eighteen (18) months) can also include similar provisions for price adjustments. Domestic No Preference Rated Criteria Yes Firm Experience, Methodology, Qualification and Competence of Key Personnel, Knowledge Transfer and Participation of Nationals. D. Procurement of Non-consultancy Services TABLE 10: RECOMMEND PROCUREMENT ARRANGEMENT/ APPROACH FOR NON-CONSULTANCY SERVICES Estimated No Contract Description Category Cost . (in US$) 1 Procurement of drilling service (mobilization, de Non- mobilization, operation and maintenance of rigs Consultan 18,000,000 including spare parts) for drilling of three wells at cy Adonshe of Aluto and four wells at Allalobeda, four Service shallow and two deep wells at Dubti SOLOMON 24 PPSD for the first phase of the PRIME program 2 Certification on Power Market and Trading, Project Non- 849,750.00 Management Certification, Financial Management Consultan Certification, Environmental & Social Impact cy Certifications, FIDIC Certification, Human Resource Service Management Certification, Project Financing Certification, and Project Financing Certification CONTRACT APPROACH Selected Attribute arrangem Justification Summary/Logic ent Specificati Conformance EEP with assistance of the consultant can describe the ons requirements for transmission line & Substation equipment and there is a little/no need for the supplier innovate. Sustainabi Yes EEP apply GoE and WB social and environmental standards lity as per the contract ESH assessment outputs. The project is Requirem targeting promotion of green energy products and is sound ents in terms of sustainability Contract Traditional Type Pricing Lamp sum The contract will base on estimated quantities of items and and contractual unit prices for each of these items. Payment is Costing made based on the actual quantities and contractual unit Mechanis prices m Supplier Adversarial There are many suppliers/ contractors in the market and Relationshi there is strong competition in the market and also the p scope of work is standard. Price Adjustable The current market situation is not forecastable, and inability Adjustment to adjust the contract price in response to changing s circumstances can expose them to business risk. To avoid this, Contracts of shorter duration (less than eighteen (18) months) can also include similar provisions for price adjustments. Form of Bank’s Cost effective and readily available, Should secure Contract Standard competitive bids, well known to client staff and supplier, C (Terms and Contract Conditions) Terms and Conditions Selection Requests for All requirements are specified. Method Bids (RFB) Market A. Open- It provides an equal opportunity to all eligible Approach Internation prospective Bidders/Proposers to bid/propose for the al and required Goods, National Works, or Services. SOLOMON 25 PPSD for the first phase of the PRIME program B. single Actually, requested for bid is single –stage, single stage Two envelope, but the bank recommended to use single Envelope stage- two envelope for all open-international bid. Pre /Post Post It is useful to checked and verify that a Bidder/Proposer Qualificatio Qualificati that would be recommended for contract award has the n on capability and resources to effectively carry out the contract. Evaluation Adjusted Bid Adjustments of Bid price include arithmetic correction, of Costs Price any discounts, and other adjustments specified in the request for bids/ request for proposals Domestic No The provision of domestic preference will be included in Preference the bidding documents and applied in the evaluation of bids Rated Applicable. Rated-type criteria, that is, non-price attributes Criteria assessed with merit points, are used, when benefits may not be quantifiable. 6. Preferred Arrangement for Low-Value / Low-Risk Activities The procurement approaches for contracts that were identified as part of the Supply Positioning analysis in Section II as not requiring a detailed assessment and justification for the selected procurement approach. Table-11 depicts procurement approach of Low-Value, Low-Risk Contracts. TABLE 11: PROCUREMENT DETAILS FOR LOW-VALUE, LOW-RISK CONTRACTS Procu Estimated Procur. r. No Contract Category Cost Approach Meth od Grid Modernization Support Consultan 588,096.3 Consultancy-1: Consultancy cy Open- service to prepare bidding 1 Internation QCBS document and Support on al Procurement of System Defense and System Digital Twin Project. 2 Grid Modernization Support Consultan 552,416.7 Consultancy-2: Consultancy cy service to prepare bidding Open- document and Support on Internation QCBS Procurement for of System al Instrumentation Improvement Project. 3 Design and build of Laboratory building Post for Instrumentation system installation Consultan Open- cy 2,300,000. National Qual./ by the other contractor 00 RFB SOLOMON 26 PPSD for the first phase of the PRIME program 4 Project E&S Support Consultancy: Consultancy for Limu Genet, Bale Robe Consultan Open- cy 195,512.6 National CQS and Bensa Daye ESIA Study 1 5 Project E&S Support Consultancy: Conduct Resettlement Action Plan (RAP) for Open- Consultan Haromaya-Chelenko, Bale Robe, cy Internation QCBS 580,737.5 al Arsi Robe, Shashemene, Bensa Daye, Durame, Woliso, Limu Genet & Injibara Projects 6 Project E&S Support Consultancy: Conduct Environmental & Social Impact Open- Consultan Assessment (ESIA) and cy Internation QCBS 763,116.0 al Resettlement Action Plan (RAP) for Kamashi, Debark, Fiche, Mehal Meda and Wereilu Projects 12 Technical and Procurement Support Consultancy: Review the final technical design and bid Open- Consultan 1,211,562. Internation documents for the 5 Trans Lines cy QCBS 1 al and Sub (2 Sub and 2 TL cont.), and Support on the procurement of main contractor selection. 13 Consultancy Service on Technical design, Procurement and Contract Management: Consultancy service to Open- Consultan carry out gap analysis and design of cy 288,500.0 Internation QCBS EEP's technical design, Procurement 0 al and contract management capacity strengthening program at EEP. 14 ESRM and Gender Program Design Consultancy for EEP: Consultancy Open- service to carry out Gap Analysis and Consultan Design of ESRM and Gender cy 288,587.0 Internation QCBS al management Capacity Strengthening Program at EEP 15 HR Development Strategy and Roadmap: Consultancy service to Identify capability gap and propose HR Open- Consultan development strategy, Specify cy 200,000.0 Internation CQS management development 0 al interventions, and Prepare the roadmap 16 Capacity Development Program Consultan 200,000.0 Consultancy for Petroleum and cy Energy Authority: Consultancy Open- service to carry out gap analysis Internation CQS and design of a program to build al capacity of the Authority on energy sector SOLOMON 27 PPSD for the first phase of the PRIME program 17 PSSRR Consultancy: Support for Open- Options Analysis and Stakeholder Consultan Consultation for Power Sector cy 288,500.0 Internation CQS Structural Reform Roadmap 0 al 18 Organizational Design and Competency Framework Development: Review EEP's Corporate and Business strategy and Open- Consultan prepare Process Design, Propose cy 2,349,162. Internation QCBS structure, Job Design, Competency 00 al framework and Support the implementation 19 Consultant Service for securing Open- adequate tariff revenues for EEP in face Consultan RFP/Q of fluctuations in inflation and currency cy 350,000.0 Internation CBS exchange rate 0 al 20 Consultancy service for achieving Open- economically optimal investments Consultan RFP/Q cy 500,000.0 Internation CBS based on robust least cost planning 0 al 21 Consultancy service for accounting, Open- functional, asset and human resource Consultan RFP/Q separation of Generation, Transmission, cy 1,200,000. Internation CBS and System Operation functions 00 al 22 Procurement of Consultancy services Open- for data review and surface exploration Consultan RFP/Q and conceptual modelling at Adonshe cy 3,000,000. Internation CBS of Aluto 00 al 23 Procurement of training services for rig crew, data management Consultan Open- implementation, office software’s and cy 1,000,000. National CQS hardware’s to strengthen new 00 institutional capacity 24 Project E&S Support Consultancy: Post Consultancy for all exploration sites Consultan Open- cy 195,512.6 National Qual./ ESIA Study 1 RFB 25 Consultancy service to build capacity Open- of EEP and MoM to scale geothermal Consultan RFP/Q and other renewable energy and cy 2,000,000. Internation CBS preparation of bidding documents 00 al 26 Procurement of consultancy service for Open- Technical Assistances and Capacity Consultan RFP/Q cy 2,800,000. Internation CBS Building 00 al 27 Regulatory Reform Consultancy Service: Consultancy Service to conduct Regulatory mandate Open- assessment, Gap analysis and update Consultan RFP/Q existing regulatory instruments, Codes, cy 500,000.0 Internation CBS Directives, Guidelines and provide legal 0 al and regulatory amendment recommendations. 28 Capacity Building Consultancy Service: Consultan Open- Consultancy service to provide inhouse cy RFP/Q 225,000.0 Internation CBS capacity building trainings on 0 al SOLOMON 28 PPSD for the first phase of the PRIME program developed/ updated regulatory instruments, tools/soft wares. 29 Procurement of Energy Measuring Tools Consultan Open- including office facilities, software, lab cy RFP/Q 225,000.0 Internation CBS equipment, etc. 0 al 7. Summary of PPSD to Support the Preparation of PAD by the Bank Achieving VFM is of vital importance in the successful delivery of this project. As per the assessment, Selected Procurement Methods for High value Goods, Works and Service is Open- international and national with rated criteria and standard contract forms. The proper procurement method should be planned to ensure bidders best placed to provide VFM are encouraged to bid and are given the best opportunity to demonstrate the value they can offer through the selection process so that ultimately the right bidder is selected for the award of the contract. By using the right procurement method, the likelihood of the right bidders participating is much higher and making better bids, and there is a higher overall chance of achieving optimal VFM. The Client practical experiences taken from the previous projects are also considered during development of the procurement approaches. In order to avoid potential time and cost overruns during contract implementation, extensive mitigation measures must be developed to strengthen the institutional capacity of EEP so as to prevent potential time and cost overruns. PPSD includes mitigation measures that address procurement, contract management, internal control and oversight system development for EEP. The World Bank will provide oversight of procurement activities through prior and post reviews., The details of the procurement review/oversight are defined in the annex 7 and 8 18-month Procurement plan. procurement post review will be conducted periodically using sample contracts SOLOMON 29 PPSD for the first phase of the PRIME program Annex 1: All Previous Similar Project Experience Annex 2: Proposed Contract Annex 3: Risk Analysis Based on Previous Experience Annex 4: Market Research & Analysis SOLOMON 30 PRIME-1 PPSD Annex 5: Procurement Plan FIRSTPOWERSECTORREFORM INVESTMENTANDMODERNIZATION IN ETHIOPIA (PRIME-1)PROJECTS Procuremetn Plan for ConsultancyServices Reque st for Selection Me thod:- Te rms of Evaluation Me thod Expression of Proposa P rocure m ent Approa ch Pre/P os tQ ua lifica tion; Reference R isk (High, Intere st Ev aluation of Short List Ba nk /C om pe tition SP D(R FP /RF B /R FQ , Ex pression of and Dra ft Contract Estim atedC ost Subs tantial, Ra te d Contract Title/Description a Category O ve rsght I(nterna tiona l, Na tional, Com pe titive D ia log ue , Pos sible Interesta nd Req uest Num bers (in US $) Mode rate, Da te Da te (Prior/P ost) O pen, Lim ited, D irect,Sol Fram ew ork Ag re e m e nt,E - Criteria (VfM)/ Indicative R ated Date No- Publishe Closing S hort List of for Invitation Sub Low ) Low est W eighting Proposed Date Date Op en Sou e tc.) R e verse Auction, (Q C B S , Con sultants Prop osals C ritera objection d FB S,L CBS ,Q BS ,C Q S,D S ,) E va lua ted Component-2: Transmission Network Strengthening and Modernization (IDA: US$ 281M) 2c: Project Management Consultancy Support includign Vehicles Cont -10 Procurem ent of consultancy service of Project Supervision and contract Manag em ent services for Phase-1 Consultancy 3,921,193.09 High Prior Open-International QCBS/RFP Rated Criteria 10: 90 to 40 :60 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 Transm ission & S ubation Projects and S IIP Cont -11 Procurem ent of consultancy service of Project Supervision and contract Manag em ent services for Phase-2 Consultancy 3,921,193.09 High Prior Open-International QCBS/RFP Rated Criteria 10: 90 to 40 :60 70:30 1-Jul-24 8-Jul-24 8-Jul-24 29-Jul-24 19-Aug-24 26-Aug-24 2-Sep-24 Transm ission & S ubation Projects 2d: Support for Structural and Operational Reforms at EEP Cont -5 Organizational Design and Com petency Fram ework Developm ent: Review EEP's Corporate and Business trateg y and prepare Process Design, Propose structure, Job Design, Consultancy 2,349,162.00 High Prior Open-International QCBS/RFP Rated Criteria N/A N/A 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 Com petency fram ework and S upport the implim entation Cont -7 Consultane S urvice for securing adequate tariff revenues for EEP in face of fluctuations in inflation and currency Consultancy 350,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 exchang e rate Cont -8 Consultany service for achieving econom ically optimal investments based on robust least cost planning Consultancy 500,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 Cont -9 Consultany service for accounting, functional, asset and hum an resource separation of Generation, Transm ission, Consultancy 1,200,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 and System Operation functions Component-3: Enabling Private Participation in RE Generation (IDA: US$ 50M, GCF: US$ 17M) 3a: Upstream RE Parks Preparation Cont -4 Procurem ent of Consultancy services for supervision of drilling operations and well testing Consultancy 7,000,000.00 High Prior Open-International QCBS/RFP Rated Criteria 90: 10 to 60 :40 60 to 40 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 Cont -5 Procurem ent of Consultancy services for data review and surface exploration and conceptual m odelling at Adonshe Consultancy 3,000,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 of Aluto Cont -7 Procurem ent of training services for rig crew, data m anag em ent im plem entation, office software’s and Consultancy 1,000,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 hardware’s to streng then new institutional capacity Cont -8 Project E&S Support Consultancy: Consultancy for all exploration sites ESIA Study Consultancy 195,512.61 High Post Open/National CQS/RFP N/A N/A N/A 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 3b: Technical Assistant to Support RE projects Cont -1 Consultancy service to build capacity of EEP and MoM to scale geotherm al and other renewable energ y and Consultancy 2,000,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 preparation of bidding docum ents Component-4: Technical Assistance and Institutional Capacity Building at PEA (IDA: US$ 5M) Cont -1 Procurem ent of consultancy service for Techincal Assistances and Capacity Building Consultancy 2,800,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 Cont -2 Reg ulatory Reform Consultancy S ervice: Consultancy Service to conduct Reg ulatory mandate assessm ent, Gap analysis and update existing regulatory instrum ents, Codes, Consultancy 500,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 Directives, Guidelines and provide legal and regulatory am endm ent recom m endations. Cont -3 Capacity Building Consultancy Service: Consultancy service to provide inhouse capacity building trainings on Consultancy 225,000.00 High Prior Open-International QCBS/RFP Rated Criteria 20: 80 to 30:70 70:30 1-Apr-24 8-Apr-24 8-Apr-24 29-Apr-24 20-May-24 27-May-24 3-Jun-24 developed/ updated reg ulatory instrum ents, tools/soft wares. SOLOMON 0 PPSD for the first phase of the PRIME program Annex 6: PPA Procurement Plan FIRSTPOWERSECTORREFORM INVESTMENTAND MODERNIZATION IN ETHIOPIA (PRIME-1)PROJECT PROJECTPREPARATIONADVANCE- EEP Pro cu rem e n t C a te g oryo f Selection Me tho d R isk (Hig h, A p p r oa ch Pro c u re m en t (QC BS ,FBS ,LC BS , Exp ectedd a teo f Exp ec tedd ate Expecte dD a te Ref. Im plem en t Estim a tedC ost Su bstan tial, Re vie wb yB an k (Inte rn a tion al, Sho rtlisting DirectPerson W BS ContractDescription (Con su lta n cy,n on- Q BS ,CQ S,D S, bid/ pro p os al o fC o ntract o fCon trac t N o. ingA g ency (in U S$) Mo derat e, (P rior/Post) N a tio n al, (Yes / N o) Incharge Num ber co n su lta ncy , RFB ,RF P,RF Q , Su bm issio n S ign ature Co mp letion Lo w) Lim ite d ,D ire c t go o d s,W ork s) etc.) Sele ctio n ,e t c.) Component-2 (TransmissionNetworkStrengtheningandExpansion) 581,802.87 768,442.77 1 Pro jectE & SS upp ortC on su ltan cy:Con duct Res ettlem entA ction Plan (R AP) for Harom ay a- Con sultancy EEP 193,204.92 high Post National CQS No 29-Jan-23 07-May-23 19-Sep-23 TadesseBiru Ch elen ko, Bale Rob e andA rsiR ob e Services 2 ProjectE & SSu pp ortC on sultan cy:C onduct Resettlem entA ction Plan (RAP) for Shashem ene, Con sultancy EEP 191,109.10 high Post National CQS No 00-Jan-00 00-Jan-00 00-Jan-00 TadesseBiru BensaD aye andD uram e Project Services 3 Projec tE & SS upp ortC on sultan cy:Con duct Resettlem en tAction Plan (RAP) for Woliso, Limu Con sultancy EEP 197,488.84 high Post National CQS No 29-Jan-23 07-May-23 19-Sep-23 TadesseBiru Gen et & Injibara Projects Services 4 ProjectE & SS up portC on sultan cy:C onduct Resettlem en tAction Plan (RAP) for Kam ashi and Con sultancy EEP 193,877.79 high Post National CQS No 00-Jan-00 00-Jan-00 00-Jan-00 TadesseBiru Deb ark Projects Services 5 ProjectE &SSup p ortC on sultan cy:C on duct ResettlementAction Plan (R AP) for Fiche, Mehal Con sultancy EEP 197,268.14 high Post National CQS No 29-Jan-23 07-May-23 19-Sep-23 TadesseBiru Med a and Wereilu Project Services 6 Pro jec tE & SS u pp ortC o nsultanc y:C onduct En viron m en tal andS ocial Im pact Assessm ent- Con sultancy (ESIA ) for Lim uG en et, Bale Rob e&B ens aDay e EEP 195,512.61 high Post National CQS No 00-Jan-00 00-Jan-00 00-Jan-00 TadesseBiru Services Projects 7 Pro jec tE & SS u pp o rtCo n sultanc y:C onduct En viron m en tal andS ocial Im pact Assessm ent- Con sultancy EEP 180,599.09 high Post National CQS No 29-Jan-23 07-May-23 19-Sep-23 TadesseBiru (ESIA ) for Kam as hi an dD eb ark Projects Services 8 Pro jec tE & SS u pp ortC onsultanc y:C onduct En viron m en tal andS ocial Im pact Assessm ent- Con sultancy (ESIA ) for Fiche, Meh al Med a and Wereilu Projects EEP 196,697.74 high Post National CQS No 00-Jan-00 00-Jan-00 00-Jan-00 TadesseBiru Services 9 Tec hnic ala ndP ro cure m en tS upp o rt Co nsu ltanc y: Prep are fin al technical d esig n and bid docu men ts for the1 4 T/M Lin es an dS /S,& Con sultancy Sup port thep rocu rem en t of Project Man ag em ent EEP 1,211,562.08 high Prior International QCBS Yes 31-Mar-24 30-Jun-24 10-May-25 Munir Hussen 000024-06 Services Con sultan ts an d m ain p roject con tractor 10 Grid Mo d erniz atio nSu pp ortC o nsu ltanc y-1: Con su ltan cy s ervice to prepare b idd in gd ocu m en t Con sultancy andS u p port on Procu rem en t of System D efen se EEP 588,600.00 high Prior International QCBS Yes 19-May-24 06-Sep-24 20-Mar-25 Munir Hussen Services andS y stem D igital Twin Project. G rid Mo de rn iza t ionS u p p or tC o n su lta n cy -2 : Con s ultan cy s erv ice to p rep are b idd in gd ocu m ent Con sultancy 11 EEP 552,000.00 high Prior International QCBS Yes 19-May-24 06-Sep-24 20-Mar-25 Hiwot Eshetu 31,221,120.00 an dS u p port on Procu rem en t for of S y s tem Services Ins tru m en tation Im p rov em en t Project. 12 Co n su ltan cyS e rv iceo nT ec hn ic a ld es ig n , Pr o c u r em en ta n dC o n tr ac t Ma n ag e m e nt : Con s ultan cy s erv ice to carry ou tg ap an aly s is and Con sultancy Post EEP 288,500.00 high International QCBS Yes 19-Jun-24 07-Oct-24 19-Feb-25 Hussen Adem des ig n of E EP's tech n ical d es ign , Procu rem en t and Services con tract m an ag em en t cap acity s tren g th en in g prog ram at E E P. 13 ES R Ma n dG e n d e rP r o g ra mD e s ig nC o n su lta ncy fo rE E P :C on s u ltan cy s erv ice to carry ou tG ap Lensie Edae & An aly s is an dD es ig n of E S R M an dG en d er Con sultancy EEP 275,207.86 high Prior International QCBS Yes 05-May-24 23-Aug-24 05-Jan-25 Meron m an ag em en tC ap acity S tren gth en in g Prog ram at Services Yohan nis EE P 14 HRD e velop m en tS trate gyan dR o ad m ap : Consu ltanc yserv ice to Iden tify capab ility g ap and Dr. propos eH Rd ev elop m en tstrateg y,Sp ec ify Con sultancy Post EEP 200,000.00 high International CQS No 29-Jan-23 07-May-23 20-Aug-23 Wod wosen m anag em entd ev elop m en t interven tion s , and Services Kas sa Prepare th e road m ap 15 PS SRRC o n sultanc y:S upport for Op tionsAnalysis an dStakeh old er Con sultation for Power Sector Con sultancy Post Maralem EEP 288,500.00 high International CQS No 19-Jun-24 07-Oct-24 19-Feb-25 Structural Reform R oad m ap Services Amdeb irhan 16 CertificationP rogr am : Power m arket & trad ing, Projec tm an ag em en t, Financ e Proc ess ,E&S Dr. Man ag em en t Plan ,C on tractA dm inistration ,HR Non-cons ultancy Direct EEP 849,750.00 high Direct Selection Direct No 01-Nov-23 01-Jan-24 30-Jun-24 Wod wosen Man ag em en t, Projec tF inan cing , Mon itoring& services Kas sa Evalu ation. Component-4:TechnicalAssistanceandCapacityBuildingofPEA(Beneficiary) 17 Cap ac ityD e velo p m entP ro gr amC o nsultan cyfor P etro leu m an dE nerg yA uth o rity: Con su ltancy Con sultancy Post Bahiru serv ice to carry ou tg ap an aly sis an dd esign of a EEP 200,000.00 high International CQS No 08-Jan-23 07-May-23 20-Aug-23 Services Wak jira prog ram to b uild cap acity of th eA uthority on en erg ys ector TotalApprovedBudgetofPPA(USD) 5,999,878.19 TotalApprovedBudgetofPPA(ETB=56.56) 339,353,110.31 Note: 1 All CQSmethodswill beusedthrough advertisementofRequestforExpressionof Interestnotice. 2 3 SOLOMON 1 PROCUREMENT Ethiopia : Power Sector Reform, Investment and Modernization in Ethiopia (PRIME-1) PLAN General Information Country: Ethiopia 2024-01-31 Bank’s Approval Date of the Original Procurement Plan: 2024-05-17 Revised Plan Date(s): (comma delineated, leave blank if none) Project ID: P176731 GPN Date: 2024-01-24 Project Name: Power Sector Reform, Investment and Modernization in Ethiopia (PRIME-1) Loan / Credit No: IDA / V5020 Ethiopian Electric Power 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$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual NON CONSULTING SERVICES Activity Reference No. / Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Description Component Review Type Method and Recommendation Signed Contract Contract Completion o. h cess (Y/N) ount (US$) (US$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual CONSULTING FIRMS Activity Reference No. / Combined Evaluation Loan / Credit N Market Approac Contract Type Estimated Amo Actual Amount Expression of Interest Short List and Draft R Request for Proposals Opening of Technical Evaluation of Technic Description Component Review Type Method Process Status Terms of Reference Report and Draft Neg Signed Contract Contract Completion o. h unt (US$) (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 ET-EEP-405303-CS-QCBS / T echnical and Procurement Su pport Consultancy: Prepare fi nal technical design and bid Quality And Cost- Open - Internationa Under Implement IDA / V5020 Prior 1,211,562.00 0.00 2024-01-31 2024-02-15 2024-02-19 2024-02-22 2024-04-03 2024-05-01 2024-05-31 2024-07-05 2024-08-09 2025-04-06 documents for the 14 Trans Based Selection l ation mission Lines and Substatio ns, & Support the procureme nt of Project Management Co nsultants and main project c ontractor ET-EEP-405304-CS-QCBS / G rid Modernization Support Co nsultancy-1: Consultancy ser Quality And Cost- Open - Internationa Under Implement IDA / V5020 Prior 588,096.00 0.00 2024-01-31 2024-02-15 2024-02-21 2024-02-22 2024-04-05 2024-05-03 2024-06-02 2024-07-07 2024-08-11 2025-02-07 vice to prepare bidding docu Based Selection l ation ment and Support on Procure ment of System Defense and System Digital Twin Project. ET-EEP-405306-CS-QCBS / G rid Modernization Support Co nsultancy-2: Consultancy ser Quality And Cost- Open - Internationa Under Implement IDA / V5020 Prior 552,416.00 0.00 2024-01-31 2024-02-15 2024-02-21 2024-02-22 2024-04-05 2024-05-03 2024-06-02 2024-07-07 2024-08-11 2025-02-07 vice to prepare bidding docu Based Selection l ation ment and Support on Procur ement for of System Instrum entation Improvement Projec t. ET-EEP-405310-CS-QCBS / Pr oject E&S Support Consultan cy: Conduct Resettlement Ac Quality And Cost- tion Plan (RAP) for Haromaya IDA / V5020 Post Open - National 580,737.51 0.00 Canceled 2024-02-14 2024-03-06 2024-04-19 2024-05-17 2024-06-16 2024-07-21 2024-08-25 2024-11-23 Based Selection -Chelenko, Bale Robe, Arsi R obe, Bensa Daye, Shasheme ne, Durame, Woliso, Limu G enet & Injibara Projects ET-EEP-405311-CS-QCBS / Pr oject E&S Support Consultan cy: Conduct Environmental & Quality And Cost- Pending Impleme Social Impact Assessment (E IDA / V5020 Post Open - National 763,116.00 0.00 2024-02-14 2024-03-06 2024-04-19 2024-05-17 2024-06-16 2024-07-21 2024-08-25 2024-11-23 Based Selection ntation SIA) and Resettlement Action Plan (RAP) for Kamashi, Deb ark, Fiche, Mehal Meda and Wereilu Projects ET-EEP-405660-CS-QCBS / P ower Sector Structural Refor m Roadmap /PSSRR /Consult Quality And Cost- Open - Internationa Pending Impleme IDA / V5020 Post 288,500.00 0.00 2024-02-28 2024-03-20 2024-05-03 2024-05-31 2024-06-30 2024-08-04 2024-09-08 2025-01-06 ancy: Support for Options An Based Selection l ntation alysis and Stakeholder Consu ltation for Power Sector Struc tural Reform Roadmap ET-EEP-405308-CS-QCBS / E nvironmental and Social Risk Management /ESRM/ and Ge nder Program Design Consult Quality And Cost- Open - Internationa Under Implement IDA / V5020 Post 288,587.00 0.00 2024-01-31 2024-02-04 2024-02-21 2024-02-15 2024-04-05 2024-05-03 2024-06-02 2024-07-07 2024-08-11 2024-12-09 ancy for EEP: Consultancy se Based Selection l ation rvice to carry out Gap Analysi s and Design of ESRM and Ge nder management Capacity Strengthening Program at EE P ET-EEP-405307-CS-QCBS / C onsultancy Service on Techni cal design, Procurement & C ontract Management: Consul Quality And Cost- Open - Internationa Pending Impleme IDA / V5020 Post 281,722.00 0.00 2024-02-28 2024-03-20 2024-05-03 2024-05-31 2024-06-30 2024-08-04 2024-09-08 2025-01-06 tancy service to carry out ga Based Selection l ntation p analysis and design of EEP' s technical design, Procurem ent and contract manageme nt capacity strengthening pr ogram at EEP. ET-EEP-405560-CS-CQS / Pro ject Environmental & Social S upport Consultancy: Conduct Consultant Qualifi Under Implement IDA / V5020 Post Open - National 195,512.61 0.00 2024-01-31 2024-02-06 2024-02-21 2024-03-01 2024-04-05 2024-05-05 2024-06-09 2024-09-07 Environmental and Social Im cation Selection ation pact Assessment- (ESIA) for L imu Genet, Bale Robe & Bens a Daye Projects Page 1 ET-EEP-405561-CS-CQS / HR Development Strategy and R oadmap: Consultancy service Consultant Qualifi Open - Internationa Pending Impleme to Identify capability gap & p IDA / V5020 Post 200,000.00 0.00 2024-02-14 2024-03-06 2024-04-19 2024-05-19 2024-06-23 2024-09-21 cation Selection l ntation ropose HR development strat egy, Specify management de velopment interventions, & P repare the roadmap ET-EEP-405562-CS-CQS / Ca pacity Development Program Consultancy for Petroleum an Consultant Qualifi Open - Internationa Pending Impleme d Energy Authority: Consulta IDA / V5020 Post 200,000.00 0.00 2024-02-14 2024-03-06 2024-04-19 2024-05-19 2024-06-23 2024-09-21 cation Selection l ntation ncy service to carry out gap analysis and design of a prog ram to build capacity of the Authority on energy sector ET-EEP-417826-CS-QCBS / Pr oject E&S Support Consultan cy: Conduct Resettlement Pl Quality And Cost- Under Implement IDA / V5020 Post Open - National 264,538.00 0.00 2024-03-25 2024-04-03 2024-04-08 2024-04-19 2024-05-22 2024-06-19 2024-07-19 2024-08-23 2024-09-27 2025-01-25 an (RP) for Haromaya-Chelen Based Selection ation ko, Assela-Arsi Robe, Jima II- Limu Gentet and Woliso Pow er Transmission Project. ET-EEP-417827-CS-QCBS / Pr oject E&S Support Consultan cy: Conduct Resettlement Pl Quality And Cost- Under Implement IDA / V5020 Post Open - National 232,538.00 0.00 2024-03-25 2024-04-03 2024-04-08 2024-04-19 2024-05-22 2024-06-19 2024-07-19 2024-08-23 2024-09-27 2025-01-25 an (RP) for Hawassa II – Shas Based Selection ation hemene II, Bensa Daye, Dura me and, Bale Robe Power Tra nsmission Project. 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 ET-EEP-427718-CS-CDS / Dir ect contracting of Consultanc Direct - Internation Pending Impleme IDA / V5020 Post Direct Selection 56,000.00 0.00 2024-05-17 2024-05-27 2024-06-24 2024-07-24 y Services for Home Office T al ntation echnical Assistance for Tariff Study Filing Page 2