AGRO-CLIMATIC RESILIENCE IN SEMI -ARID LANDSCAPES (ACReSAL) PROJECT PROCUREMENT STRATEGY FOR DEVELOPMENT 1 PROJECT OVERVIEW Country: NIGERIA Full Project Name: AGRO-CLIMATIC RESILIENCE IN SEMI -ARID LANDSCAPES (ACReSAL) Total Finance ($): USD 700 MILLION Project Number: P175237 Summary of Project The Project Development Objective (PDO) is to increase the adoption of climate resilient landscape Development Objectives management practices and enhance livelihoods in targeted arid/semi-arid watersheds in Northern Nigeria. PROJECT COST COMPONENTS ESTMATE OBJECTIVES OF EACH (USD) COMPONENT Component A: 299.6m This component aims to prepare and Desertification Control implement investments to arrest and Landscape desertification and improve the Management sustainable productivity of land in targeted watersheds (about 1,000,000 ha area of degraded and desert landscapes out of 4,000,000 (25%) Government program). Component B: 293.4m This component aims to support Community communities with improved capacity Livelihoods and and investments to improve Resilience sustainable livelihoods. Component C: 107.6m This component aims to strengthen Institutional capacities of institutions at various levels (e.g., national, selected states) Strengthening and to modernize their work for the Project Management longer-term on integrated multi- sectoral planning, information management, and building systems for improving land and water management and sustainable agricultural productivity in northern Nigeria. Component D: 0m This will finance a Contingency Contingency Emergency Response Component Emergency Response (CERC) for landscape and community Components (CERC): resilience in response to extreme weather, land movement events and other emergencies. LIST OF PROCUREMENT ACTIVITIES The project is designed as framework project and therefore investments and the participating states (the major investments will be implemented by the participating states) are not fully known yet. In the table below are the activities that already known, and implementation can commence immediately. The PPSD will be updated during implementation as the investments and participating states become more defined. These investments include gully erosion control, rehabilitation of irrigation and dams. S/N ACTIVITIES COST CUMMULATIVE % of ESTIMATE COST TOTAL (USD) ESTIMATE COST (USD) ESTIMATE 1 Technical assistance for 10,000,000 10,000,000 28% landscape restoration services 2 Extension services technical 9,900,000 19,900,000 57% assistance 3 Implementation support 9,500,000 29,400,000 84% consultancy 4 Long-term framework and 2,500,000 31,900,000 91% policy support 5 Development of strategic 1,600,000 33,500,000 95% catchment plan 4 Monitoring Information 600,000 34,100,000 97% System (MIS) and maintenances 5 Others ICT Equipment and 400,000 34,500,000 98% connectivity, cloud services, others general services Desktops & Laptops 300,000 34,800,000 99% Data collection and analysis at 168,000 34,968,000 100% State/federal Level Production of Manuals (PIM ) 90,000 35,058,000 100% Design and hosting of 56,000 35,114,000 100% interactive website TOTAL 35,114,000 Strategic Assessment of Operating Context and Borrower Capability Operational Context Nigeria experiences a diverse climate that ranges from arid in the north to tropical in much of the country and is listed among the countries most exposed to climate risks. The country faces a high water-scarcity hazard level, with droughts expected to occur on average every five years, with potential increased frequency due to climate change. Focusing on drylands management, ACReSAL will be implemented in the states of northern Nigeria. The agricultural sector is the major economic driver of northern Nigeria. Many projects and initiatives have been undertaken in northern Nigeria over the past decades to combat the growing crisis of desertification. The FGN is thus increasingly moving toward an integrated and multisectoral approach to address the challenges of dryland management. (a) Governance Aspects: There are security challenges in almost all the states in the northern Nigeria where the project will be implemented. The Government of Nigeria is making some progress in addressing these security challenges. The security situation may reduce the interest of major players, especially for Component A to participate in the procurement process and those that choose to participate may add a premium to the bid prices to take of the additional security arrangement they want to put in place during contract execution in case of an award. (b) Economic Aspects: Nigeria has just come out of an economic recession because of CIVID 19 pandemic and a fall in crude oil price in the world market. The country is contending with high inflation and exchange rate volatility. The high inflation and exchange rate volatility has made the prices of the major construction materials such as iron rods and cement to be volatile. Substantial proportion of the Component consist of civil works with locally available inputs (labour and materials). The effect of the exchange volatility will be minimal since bidders expecting to incur expenditures in other currencies for inputs to the Works supplied from outside the country can quote for such inputs in up to three different foreign currencies in their bids. Serious bottleneck exists in the main seaport where goods to be imported from abroad will be discharged. This has led to delay in the custom clearance of good from the port with the resulting demurrage payment and delay in contract execution. The government is working on policy that will remove the bottlenecks. (c) Sustainability Aspects: The government environmental and social standards requires that Environmental and Social Impact Assessment be carried on all major works project before the commencement of such works. ESIA will apply to this project and will be reflected in the solicitation documents and contracts for civil works under the project. (d) Technological Aspects: Kaduna, Niger, Kogi, Jigawa, Borno, Kano and Gombe States that will likely participate in the project have an e-Procurement system which is being used in some of the MDAs. Sokoto State is in the final stages of their e- Procurement implementation. The systems so deployed will be used for procurement under the project. This will further improve value for money, transparency, economy, efficiency, effectiveness, integrity, and openness of procurement process under the project. The country is covered substantially by GSM, part of which is through extensive fiber optic cabling leading to increased networking and internet availability. The availability of reasonable internet access will facilitate the use of the World Bank Systematic Tracking of Exchanges in Procurement (STEP) which is mandatory requirement in the processing all procurement activities under the World Bank Procurement Regulations. Key Conclusions: The security challenges in the country especially in the northern states that will participate in the project may reduce the participation of foreign firms and firms from other parts of the in the procurement process for the project. The current high inflation and exchange rate volatility in the country will affect the costing of the various procurement packages in the project. The use of eProcurement for by the participating states and the FPMU will improve value for money, transparency, economy, efficiency, effectiveness, integrity, and openness of procurement process under the project Assessment of Borrower previous Experience, Capability and Project Implementation Unit (PIU) The project will be implemented using the existing NEWMAP PMUs at both Federal and State levels that are implementing NEWMAP and the NEWMAP AF that will close on June 30, 2022. The implementation arrangement is similar to that of NEWMAP. Each state will be responsible for the procurement of its own activities including contract management and administration. The FPMU and the states that are implementing NEWMAP have experience in World Bank Procurement Regulations. The procurement officers have received sufficient training in procurement under World Bank funded project. The gaps that were observed in the implementation of NEWMAP especially in contract management will be addressed under ACReSAL. Training will be provided on contract management, application of price adjustment, contract monitoring and supervision as soon as the project is effective. Market Analysis The summary of the procurement activities under the project are as follows • Civil works: o gully erosion control, o flood and sedimentation control, o construction of firebreaks, o rehabilitation and construction of small dams, o small scale irrigation infrastructure, o small buildings There are several players both national and international in the marketplace for these activities. International open competitive procurement approach will be used for high value, high risk gully erosion control and construction of dams and firebreaks. The other low value, low risk procurement will follow national open competition or limited competition as may be appropriate. • Goods: o fire control equipment, o vehicles, o farm inputs (seeds, fertilizers), o post-production equipment, o computers, furniture They are locally available and be supplied by several suppliers and the procurement approach will be national open/limited completion as may be appropriate. The approach for the procurement of farm inputs (seeds, fertilizer) will limited competition between the well-known producers/suppliers of these goods. • Consulting services: The major consulting services includes engineering design and supervision of the major civil works like gully erosion control and rehabilitation of dams. The firms that offer this service are available in the local and international markets. Due to the criticality of this consulting assignment to the overall delivery of the major works contracts, the procurement will be designed to attract best consulting firms to express interest in this assignment. Procurement Risk Analysis Market Risk Description of Risk Owner /Contract Description Mitigation Title Description Construction of Designs may no A consultant will be State PMU and shovel ready longer be valid by the hired to update the World Bank gully erosion contracts during design before the control site contract execution commencement of the procurement process Expansion of the Provisions for State PMUs gullies between physical bidding and contract contingencies will signature made in the signed contract. Expansion of gullies Proper drainage on Contractor during construction the site must be due to poor drainage maintained during resulting from construction and the construction of the Contractor shall be works held responsible for any flood damage to life and properties due to his work in this Contract. The Contractor shall allow in his rates, inter alia, for all costs to maintain or divert flow in drains, ditches, open channels and watercourses during construction and other drainage work. No claims for additional payment will be considered in this regard. Construction Poor supervision of supervision the works contracts consultancy Procurement of Delay in port All the necessary PMUs goods to be clearance documentation and imported from waivers will be outside the processed speedily country (delfino ploughs, tractors, etc) General (for all High inflation and Price adjustment to PMUs contracts) exchange rate applied to most even volatility if they duration is less than 18 months. Procurement Objective • To a minimum of 8 qualified consultants to participate in the selection process for the engineering design and supervision consultancy for the major works contracts. • To take advantage of the dry season for the construction contracts by aligning the commencement of the works with the dry season in the project areas. • Value for money and integrity in the procurement process using electronic procurement system. • To have not less than six qualified firms submit bids for the major works contracts. • Procurement Approach Options and Recommendation The following will be a draft zero of the procurement approach options and recommendations. This is because the major investments are not yet known. This section will be updated once the investments are finalized. • Contract and Estimated Cost: Landscape investments (many packages)– USD236 million • Procurement Approach Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Details design for shovel- ready investments from NEWMAP are available. Engineering firm will be hired to provide detail designs for other investments. Sustainability No All the safeguard studies Requirements will be carried out separately and cost implications will be included in the bidding document. Contract Type Traditional Pricing and costing Schedule of mechanism Rates/Admeasurement Price Adjustments None/Percentage Form of Contract (Terms and Conditions) Selection Method Request for Bids (RFB) Selection Arrangement N/A Market Approach Open International/National Pre/Post Qualification Post Evaluation Selection Least Cost Based Method Selection (LCS) Evaluation of Costs Adjusted Bid Price Domestic Preference No Rated Criteria N/A • Contract and Estimated Cost: Development of strategic catchment plan – USD1,600,000 • Procurement Approach Attribute Selected arrangement Justification Summary/Logic Sustainability N/A Requirements Contract Type Traditional Pricing and costing Lump Sum mechanism Price Adjustments None Form of Contract (Terms N/A and Conditions) Selection Method Request for Proposals (RFP) Selection Arrangement N/A Market Approach Open International Pre/Post Qualification Pre-Qualification Evaluation Selection Quality Cost Based Method Selection (QCBS) Evaluation of Costs N/A Domestic Preference N/A Rated Criteria Mandatory • Contract and Estimated Cost: Long-term framework and policy support – USD2,500,000 • Procurement Approach Attribute Selected arrangement Justification Summary/Logic Sustainability N/A Requirements Contract Type Traditional Pricing and costing Time and Materials mechanism Price Adjustments ????? Form of Contract (Terms ????? and Conditions) Selection Method Request for Proposals (RFP) Selection Arrangement N/A Market Approach Open International, Two Envelopes Pre/Post Qualification Pre-Qualification Evaluation Selection Quality Cost Based Method Selection (QCBS) Evaluation of Costs Adjusted Bid Price Domestic Preference No Rated Criteria • Specific experience • Methodology and workplan • Qualification and experience of key experts • Contract and Estimated Cost: Implementation support consultancy – USD9,900,000 • Procurement Approach Attribute Selected arrangement Justification Summary/Logic Sustainability N/A Requirements Contract Type Traditional Pricing and costing Lump Sum mechanism Price Adjustments None Form of Contract (Terms N/A and Conditions) Selection Method Request for Proposals (RFP) Selection Arrangement N/A Market Approach Open International Pre/Post Qualification Pre-Qualification Evaluation Selection Quality Cost Based Method Selection (QCBS) Evaluation of Costs N/A Domestic Preference N/A Rated Criteria Mandatory • Contract and Estimated Cost: Development of strategic catchment plan – USD1,600,000 • Procurement Approach Attribute Selected arrangement Justification Summary/Logic Sustainability N/A Requirements Contract Type Traditional Pricing and costing Lump Sum mechanism Price Adjustments None Form of Contract (Terms and Conditions) Selection Method Request for Proposals (RFP) Selection Arrangement N/A Market Approach Open International, Two Envelopes Pre/Post Qualification Pre-Qualification Evaluation Selection Quality Cost Based Method Selection (QCBS) Evaluation of Costs Adjusted Bid Price Domestic Preference No Rated Criteria • Specific experience • Methodology and workplan • Qualification and experience of key experts Preferred arrangement for low value, low activities Contract Category Estimated cost Procurement Arrangement and Method Desktops & Goods 300,000 Open National Laptops Others ICT Goods 400,000 Open National Equipment and connectivity, cloud services, others general services Production of Goods 90,000 Limited RFQ Manuals (PIM Monitoring Consultancy 600,000 Open National Information System (MIS) and maintenances Design and hosting Consultancy 56,000 Limited CQS of interactive website Data collection and Consultancy 168,000 Limited CQS analysis at State/federal Level Summary of PPSD to be inform the Bank’s preparation of the PAD The project is designed as framework project and therefore investments and the participating states (the major investments will be implemented by the participating states) are not fully known yet. The security challenges in the country especially in the northern states that will participate in the project may reduce the participation of foreign firms and firms from other parts of the in the procurement process for the project. The current high inflation and exchange rate volatility in the country will affect the costing of the various procurement packages in the project. The use of eProcurement for by the participating states and the FPMU will improve value for money, transparency, economy, efficiency, effectiveness, integrity, and openness of procurement process under the project. The FPMU and the states that are implementing NEWMAP have experience in World Bank Procurement Regulations. The procurement officers have received sufficient training in procurement under World Bank funded project. The gaps that were observed in the implementation of NEWMAP especially in contract management will be addressed under ACReSAL. A sufficiently large numbers of firms are available locally and international for most of the procurement packages under the project, therefore competitive procurement can readily be used to achieved value for value during procurement implementation. The design of the gully erosion sites already cleared under NEWMAP that will be transferred to project will be updated prior to the launching of the procurement processes for the construction of such sites. The PPSD will be regularly updated as there are clear pictures on the participating states and the procurement activities that will be implemented by the states and the FPMU. Contract Estimat Bank Procurement Selecti Evaluati Title, ed Cost Oversig Approach/Competi on on Description US$ and ht tion Method Method and Risk Category Rating Implementati 9,500,00 Prior International SPD Rated on support0 (RFP) Criteria consultancy Substanti (VfM) al Long-term 2.500,00 Prior International SPD Rated framework 0, (RFP) Criteria and policy Substanti (VfM) support al Development 1,600,00 Prior International SPD Rated of strategic 0, (RFP) Criteria catchment Substanti (VfM) plan al Monitoring 600,000, Post International SPD Rated Information Moderate (RFP) Criteria System (MIS) (VfM) and maintenance s Others ICT 400,000, Post National RFB Lowest Equipment Moderate Evaluated and Cost connectivity, cloud services, others general services Desktops & 300,000, Post National RFB Lowest Laptops Low Evaluated Cost Data 168,000, Post National CQS Negotiati collection Moderate on and analysis at State/federal Level Production of 90,000, Post National RFQ Lowest Manuals Low Evaluated (PIM) Design and 56,000, Post National CQS Negotiati hosting of Moderate on interactive website PROCUREMENT Nigeria : Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) PLAN General Information Country: Nigeria 2022-09-15 Bank’s Approval Date of the Original Procurement Plan: 2022-11-21 Revised Plan Date(s): (comma delineated, leave blank if none) Project ID: P175237 GPN Date: Project Name: Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Loan / Credit No: IDA / 70150 Katsina State ACReSAL 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$) ) for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned NG-KATSINA STATE ACRESA- Request for Bids - 309075-CW-RFB / Constructi Component A: Dryland Mana Single Stage - One E Small Works SPD Pending Imp 2023-12-1 on of Water conservation str IDA / 70150 Post Request for Bids Limited 6,500,000.00 0.00 2022-10-18 2022-10-25 2022-11-22 2022-11-29 2022-12-17 gement nvelope (1 envelope proce lementation 7 uctures at Sabon Layi Galadi ss) ma (Emergency Site) in Fask ari LGA of Katsina State NG-KATSINA STATE ACRESA- Request for Quota 309071-CW-RFB / Constructi tions - Small Work Component A: Dryland Mana 23,000,000.0 Pending Imp 2024-05-2 on of Jibia Phase II Interventi IDA / 70150 Prior Direct Selection Direct - National s (Emergency) SP 0.00 2022-10-16 2022-10-30 2022-11-27 gement 0 lementation 7 on, River Bank Protection in D -Non Competiti Jibia LGA, (Emergency Site) i ve n Katsina State NG-KATSINA STATE ACRESA- Request for Bids - 320909-CW-RFB / Constructi Component A: Dryland Mana Single Stage - One E Works (without pr 24,000,000.0 Pending Imp 2024-06-1 on of Katsina Town Stormwat IDA / 70150 Prior Request for Bids Limited 0.00 2022-10-17 2022-10-31 2022-11-28 2022-12-05 2022-12-15 gement nvelope equalification) SP 0 lementation 4 er Drainage Management Ph D ase II (Emergency Site) GOODS Activity Reference No. / Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Description Component Review Type Method and Recommendation Signed Contract Contract Completion o. h cess (Y/N) ount (US$) (US$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual NG-KATSINA STATE ACRESA- Component C: Institutional S Request for Quota Single Stage - One E Under Imple 309119-GO-RFQ / Supply of IDA / 70150 trengthening and Project Ma Post Limited 100,000.00 0.00 2022-09-15 2022-10-20 2022-11-19 tions nvelope mentation Multispectral drone and Lidar nagement scanner NG-KATSINA STATE ACRESA- Component C: Institutional S Request for Quota Single Stage - One E Under Imple 309122-GO-RFQ / Supply of L IDA / 70150 trengthening and Project Ma Post Limited 100,000.00 0.00 2022-09-02 2022-10-14 2022-11-13 tions nvelope mentation aptop Computers, and other nagement Accessories. NON CONSULTING SERVICES Activity Reference No. / Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Description Component Review Type Method and Recommendation Signed Contract Contract Completion o. h cess (Y/N) ount (US$) (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$) Notice equest for Proposals as Issued Proposals / Minutes al Proposal otiated Contract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual NG-KATSINA STATE ACRESA- Component B: Community Cl Consultant Qualifi Pending Impleme 309079-CS-CQS / Developme IDA / 70150 Post Limited 150,000.00 0.00 2022-09-13 2022-09-20 2022-10-04 2022-10-18 2023-01-16 imate Resilience cation Selection ntation nt of Micro Watershed Manag ement Plan NG-KATSINA STATE ACRESA- Component C: Institutional S 309090-CS-CQS / Engageme Consultant Qualifi Under Implement IDA / 70150 trengthening and Project Ma Post Limited 125,000.00 0.00 2022-09-13 2022-09-22 2022-09-20 2022-10-04 2022-10-18 2023-10-13 nt of Focal NGO to Support S cation Selection ation nagement PMU activities in the Commu nities NG-KATSINA STATE ACRESA- 309103-CS-CQS / Engageme Component C: Institutional S nt of Consultant for Resettle Consultant Qualifi Pending Impleme IDA / 70150 trengthening and Project Ma Post Limited 90,000.00 0.00 2022-10-17 2022-10-24 2022-10-31 2022-11-14 2023-01-13 ment Action Plan (RAP) for Jib cation Selection ntation nagement ia Phase II, Katsina Phase II a nd Sabon Layin Galadima in Katsina State INDIVIDUAL CONSULTANTS Activity Reference No. / Loan / Credit N Market Approac Contract Type Estimated Amo Actual Amount Invitation to Identifie Draft Negotiated Cont Description Component Review Type Method Process Status Terms of Reference Signed Contract Contract Completion o. h unt (US$) (US$) d/Selected Consultant ract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual NG-KATSINA STATE ACRESA- 309107-CS-CDS / Update of C onsultancy for Monitoring an Component C: Institutional S Pending Impleme d Evaluation (M&E) Baseline IDA / 70150 trengthening and Project Ma Post Direct Selection Direct - National 100,000.00 0.00 2022-10-17 2022-11-07 2022-12-05 2023-03-05 ntation Studies for Jibia Phase II and nagement Katsina Phase II and new Stu dies for Sabon Layin Galadim a in Katsina State. NG-KATSINA STATE ACRESA- 309113-CS-CDS / Update of C Component C: Institutional S onsultancy for GIS-Base Map Pending Impleme IDA / 70150 trengthening and Project Ma Post Direct Selection Direct - National 100,000.00 0.00 2022-10-17 2022-10-31 2022-11-28 2023-02-26 ping for Jibia Phase II and Kat ntation nagement sina Phase II and new Studies for Sabon Layin Galadima in Katsina State. NG-KATSINA STATE ACRESA- 309115-CS-CDS / Update of C Component C: Institutional S onsultant for Livelihood Need Pending Impleme IDA / 70150 trengthening and Project Ma Post Direct Selection Direct - National 90,000.00 0.00 2022-10-17 2022-10-31 2022-11-28 2023-02-26 s Assessment for Jibia Phase ntation nagement II and Katsina Phase II and ne w Studies for Sabon Layin Ga ladima in Katsina State. Page 1 NG-KATSINA STATE ACRESA- 309118-CS-CDS / Update of E nvironmental Social Manage Component C: Institutional S Pending Impleme ment Plan (ESMP) Consultan IDA / 70150 trengthening and Project Ma Post Direct Selection Direct - National 200,000.00 0.00 2022-10-24 2022-11-07 2022-12-05 2023-03-05 ntation t for Jibia Phase II and Katsin nagement a Phase II and new Studies fo r Sabon Layin Galadima in Ka tsina State. Page 2