PROJECT PROCUREMENT STRATEGY FOR
DEVELOPMENT
South Tarawa Water Supply Project
Project Number
P162938
2018-10-03
TABLE OF CONTENT
1. Project Overview ............................................................................................2
1.1. Project description.......................................................................................2
1.2. Financing Arrangement ...............................................................................3
1.3. Operational Context ....................................................................................3
1.4. Key Conclusions ..........................................................................................5
2. Client Capability and Project Management Unit (PMU) Assessment ...............6
2.1. Complaints Management and Dispute Resolution Systems.........................6
2.2. Need for hands-on support..........................................................................6
2.3. Key Conclusions ..........................................................................................6
3. Market Analysis ..............................................................................................7
3.1. Market Capability and Capacity...................................................................7
3.2. Supply Market Overview..............................................................................7
3.3. Market Sector Dynamics .............................................................................8
3.4. Conclusion ...................................................................................................9
4. Procurement Trends .....................................................................................10
5. Procurement Risk Analysis ...........................................................................11
6. Procurement Approach .................................................................................12
6.1. Procurement Objective ..............................................................................12
6.2. Recommended Procurement Approaches for the Project ..........................12
6.3. Preferred arrangement for low value, low risk activities ...........................15
7. Summary of PPSD to inform the Bank’s preparation of the PAD...................16
1
Project Overview
1.1. Project description
The Government of Kiribati has requested funding from the World Bank for a project
which will:
• Upgrade water supply infrastructure and increase operation and
maintenance capacity
• Improve community water, sanitation and hygiene awareness
Country: Republic of Kiribati
Full Project Name: South Tarawa Water Supply Project
Total Finance ($): US$60.12 million
Project Number: P162938
Increase access and quality of water supply
Summary of Project services, and to improve the operational
Development Objectives performance of the water supply services
provider in South Tarawa.
The project will deliver the above through implementation of 5 Components:
Component 1: Improvement of Water Supply Services (US$40.38m): to
improve access to safe water supply services in South Tarawa and resilience of the
services to climate change. The activities under this component includes:
- Subcomponent 1.1: construction and operation of a desalination plant (4000
m3 per day) and ancillary infrastructure;
- Subcomponent 1.2: installation of a solar photovoltaic energy system
connected to the grid, to offset desalination electricity and other water supply
system needs; and
- Subcomponent 1.3: rehabilitation, replacement and/or expansion of water
supply transmission and distribution systems.
Component 2: Institutional Strengthening and Implementation Support
(US$14.13m): This component is aimed at providing support for:
- Subcomponent 2.1: the sustainability of water-related investments funded
under Component 1 and the improvement the operational efficiency and
financial viability of the Public Utilities Board (PUB), including operation and
maintenance;
- Subcomponent 2.2: project management capacity, including survey and
design, construction supervision, safeguards, sector studies, etc.; and
- Subcomponent 2.3: the preparation and implementation of sustainable
management plans to help mitigate water pollution risks to the Bonriki and
Buota water lenses, the preparation of sector regulation studies and the
continuation of water sector activities carried out under KAP-III in South
Tarawa.
Component 3: Water, sanitation and hygiene awareness ($2.23 m): This
component involves the implementation of a comprehensive and intensive 5-year
‘WASH Awareness Program (WAP)’ in South Tarawa by an international NGO (INGO)
supported by local Civil Society Organizations (CSOs) at the community level. Key
to project success, the WAP provides critical support significant transformations in
2
population’s water use and behaviour key to project success, such as: a) restoring
confidence towards PUB and the quality of its supplied water; b) deterring further
use of unsafe water sources for consumptive use; c) paying for water according to
metered consumption; d) conserving water despite its apparent abundance at the
tap; and e) changing behaviours linked to sanitation, hygiene, menstrual hygiene
management, and solid waste management in a nutrition-sensitive manner.
Component 4: Project management ($2.15m): This component will support the
operation of the Project Management Unit (PMU) housed within MISE. The PMU will
be the core unit responsible for the overall implementation of the STWSP including
the day-to-day project activities, compliance with the provisions of the grant
agreements and government policies and guidelines, project administration,
preparation of grant withdrawal applications, and maintenance of records. It will be
staffed from both MISE/PUB personnel and individual consultants.
Component 5: Sanitation pilot and water reserves management ($1.24m):
Activities under this component will include implementation of pilot sanitation
models to upgrade current sanitation services and provide an acceptable
alternative to a costly expansion of sewerage systems across all of South Tarawa
beyond the areas targeted by the current ADB financed project and the models
which will be recommended by the study commissioned by NZ MFAT as part of donor
collaboration under the project.
1.2. Financing Arrangement
The estimated total Project cost is US$60.12 million, to be financed by a grant from
the International Development Association (US$15.00 million), a grant from the ADB
(US$15.00 million), a grant from the Green Climate Fund (GCF) (US$28.63 million)
secured by the ADB and a counterpart contribution ($1.49 million).
1.3. Operational Context
• Governance Aspects
All relevant parties are positively supporting the water sector and prioritization of
the sector is expected to remain high. However, due to the size, remoteness and
the geographic setting of the country, market capacity and contactors’ interest
and/or ability to carry out long-term assignments in Kiribati is uncertain.
KFSU within the Ministry of Finance and Economic Development (implementation
agency) will lead the project procurement actions in coordination with the MISE.
• Economic Aspects
Kiribati has a limited economic base, dominated by (i) investment income from its
sovereign wealth fund, the Revenue Equalization Reserve Fund (RERF), (ii) the sale
of fishing license fees, (iii) remittances, and (iv) aid flow. Only around 20% of the
country’s population is formally employed in the cash economy, with 80% of the
jobs provided by the public sector. Food security relies largely on subsistence
agriculture and fisheries. Despite improvements in revenues in recent years,
Kiribati’s Human Development Index (HDI) ranking is 137, amongst the lowest in
3
the Pacific region. According to the last available Household Income and
Expenditure Survey (HIES) conducted in 2006, poverty was widespread in Kiribati.
• Sustainability Aspects
The project will be a key driver to enable Kiribati’s achievement of Sustainability
Development Goals namely through:
- mitigating the impacts of climate change on water supplies;
- capability development of local population through the construction and
operation phases; and
- installation of key infrastructure to enable improvements in public health.
The Procurement of the Project Components presents unique opportunity to further
support social and economic development through:
- engagement of regional supply chain; and
- capability enhancement of Ministry of Infrastructure and Sustainable Energy
(MISE) and the Public Utility Board (PUB) staff throughout the construction
and operation phase.
• Technological Aspects
To ensure the sustainability of Project’s investments and services, infrastructure will
be designed and specified considering the impacts of climate change on water
supply and demand, climate-proofed and designed with durability of materials as a
high priority. Network infrastructure will be designed to function under various 50-
year growth scenarios and the desalination system will be designed in an adaptive
manner to allow for a future increase in production capacity. The use of Solar PV
technology to power the desalination plant will significantly reduce the costs of
operating the desalination system. In parallel, to ensure sustainability from the
customer/user perspective, the Project will implement a comprehensive social
management plan, including an educational and awareness campaign throughout
the project cycle to ensure beneficiaries’ adoption of water and sanitation systems
and to promote good hygiene practices and community environmental stewardship.
Sea Water Reverse Osmosis (SWRO) Desalination
Previous studies have recommended that seawater desalination is the most cost-
effective method of augmenting the water supply from Bonriki & Buota groundwater
sources. Seawater desalination is the only available solution to produce drinking
water at scale for South Tarawa, in a drought-proof manner. Reverse Osmosis is
widely recognized as the most cost-effective technology for such range of
production capacity. The installation of a desalination system will increase the
diversity of water supply sources and provide a long term sustainable water supply
to the population of South Tarawa.1
SWRO desalination is generally energy-intensive, increasing greenhouse gas
emissions relative to competing technologies. The relative energy efficiency of the
SWRO desalination plant proposed for STWSP as well as the full solar PV offset of
the plant and new and rehabilitated network’s energy consumption counter this
possibility for STWSP.
1 Report for Asian Development Bank and Government of Kiribati - TA-9200 KIR: South
Tarawa Water Supply Project (49453-001)– Project Preparatory Technical Assistance (PPTA)
, Outputs 8, 9, 10 and 20 - Concept Design For Desalination Plant (GHD, 2018).
4
Solar PV Technology
There is a growing demand for renewable energy across the Pacific region, and it is
highly relevant in islands which rely largely on imported fossil fuel for energy
generation. The recently approved Kiribati Integrated Energy Roadmap 2016 – 2025
examines improved energy solutions, increasing access to renewable energy,
implementing climate change mitigation and adaptation measures that are
sustainable, reliable and affordable. The penetration of solar PV renewable energy
systems in Kiribati is already appreciable. The state-owned enterprise Kiribati Solar
Energy Company (KSEC) promotes and sells domestic and community scale solar
PV panels and associated equipment including inverters and battery storage
devices. The Public Utilities Board (PUB) already has a total installed renewable
energy generation capacity of just under 1500kW produced by several solar PV
arrays located in South Tarawa and has confirmed its interest in development of
new, larger scale installations coupled with high energy battery storage facilities.
A recent study by the International Renewable Energy Agency (IRENA, 201527)
concluded that (i) solar photovoltaic-powered RO desalination is the best renewable
energy technology option for South Tarawa; and (ii) renewable desalination is
already cost-competitive with fossil-fuel driven desalination and may be even more
attractive in the future should diesel prices rise.
As part of the Kiribati Energy Roadmap, the project will contribute to the goal for
Tarawa for a 45% reduction in fossil fuel use by 2025 of which 23% of this goal will
be achieved through deployment of renewable energy and 22% through
improvements in energy efficiency.2
1.4. Key Conclusions
The government support and prioritization development of the water sector is high.
The country is in the process of reforming its public procurement system. There
are available technologies on the market for this project, consistent with the
proposed project design. At the same time, there are risks with the sector policy,
limitation of the market capacity due to remoteness and small islands
2 Green Climate Fund (GCF) Funding Proposal FP084, GCF/B.20/10/Add.03, 8 June 2018
5
2. Client Capability and Project Management Unit (PMU)
Assessment
The Implementing Agency (IA) is the Ministry of Infrastructure and Sustainable
Energy (MISE). MISE has some experience in implementing projects under the ABD
and World Bank finance.
The Kiribati Fiduciary Support Unit (KFSU) was established in 2012 within MFED to
provide fiduciary services for externally-funded projects, and now is a permanent
part of the Government’s structure and capacity. The KFSU has some existing
capacity to support MISE with procurement and financial management in project
implementation and has experience with donors funded infrastructure projects.
However, a very substantial part of project management responsibility (preparation
of tender documents, contract administration, supervision of works, etc.) will rest
with the MISE.
This project will finance consultants to supplement the technical expertise required
and to establish a Project Management Unit (PMU) in MISE.
2.1. Complaints Management and Dispute Resolution Systems
At the National level, there is not a complaints management and dispute resolution
systems in place. At the project level complaints are address by the tender board
with the authority to reject/approve with the reports and recommendation from the
PMU.
2.2. Need for hands-on support
Hands on Expanded Implementation Support is not envisaged for this project. The
Government of Kiribati indicated a strong preference for the World Bank and ADB
to prepare a joint operation, rather than separate projects. Developing a unified
approach, both during preparation and throughout implementation, will help
minimize duplication, transaction costs and complexity, which would be essential in
a context of limited implementation capacity. The government also requests that
the World Bank’s task team, in cooperation with ADB, will provide hand-holding
assistance to the PMU during project implementation.
2.3. Key Conclusions
Due to the limited capacity in MISE, the project will finance consultants and establish
the PMU to be responsible for day to day project management. The KFSU equipped
with experienced and qualified staff will provide financial and procurement
management support to the MISE/PMU.
Dual systems in parallel will further stretch the limited capacity of MISE/PMU and
result in inefficiency in project implementation. Therefore, a common approach
between the World Bank and ADB should be a best option for the project. For several
reasons, including the advanced stage of ADB’s project preparation, and majority
of financing from or through ADB, ADB should be the lead co-financier to simplify
the project design and implementation.
6
3. Market Analysis
3.1. Market Capability and Capacity
In Kiribati, access to the supply and service market is very challenging due to the
remoteness. The nearest markets in the region are Australia, New Zealand and Fiji
(for small size goods or commodities). The extreme economic geography
challenges, economic growth prospects are limited, and public service delivery is
very costly.
The following table details the assessment of the supply market analysis for the
desalination system and solar photovoltaic system:
Table 2: Geographic Market Capability 3
Domesti Domes Local Regional Glob
c tic Polynesia/Micronesia/ (Aus/NZ/N al
Kiribati Kiribati Melanesia (ex NZ, New C/
Current Future Caledonia [NC]) North East
State state Asia)
Lead No No No Yes Yes
Contractor
Capital No No Potential Yes Yes
Project
Manageme
nt
Operational No Yes Yes – Fiji experience Yes Yes
Manageme
nt
Materials No No Yes – Fiji (onsellers for spare Yes - OEM Yes -
(fabricated) parts) OEM
Materials No No No – Fiji (onsellers or low Yes Yes
(indirect) tech fabrication)
Labour – Yes Yes Yes No No
Low Level
Labour - No Yes – Yes Yes No
Medium Through
KIT
Labour – No No No Yes Yes
High Level
Procurement will target, to the extent possible national and regional suppliers to
ensure competitive pricing and access to ongoing support.
3.2. Supply Market Overview
Expected global market for Water Network Fabrication, Construction and Operation
to remain until 2030 as the demand outweighs supply.4
3 Multiple sources including:
Government of Fiji http://www.fiji.gov.fj/Media-Center/Press-Releases/VANUAVATU-
DESALINATION-PLANT-TO-RELIEVE-WATER-PROB.aspx
4 Deloitte Consultancy “Water Tight 2.0 Top Trends in the Global Water Sector” Page 18
7
The fabrication and construction industry can be classified as mature with an
estimated 18000 Desalination plants operating globally5
The industry has a concentration of demand in large arid landmasses. Currently
44% capacity is in Middle East & North Africa with 40% across North America and
the Iberian Peninsula. There has been activity in the Pacific Region with plants
recently opened in Fiji, Marshall Islands, New Caledonia and Southern Australia.
Very small-scale desalination units are also being operated for local organizations
(hotels, churches, private companies, etc.) in many countries across the region,
including Kiribati.6
The maturity of the industry has resulted in Supply organizations:
• offering competitive costs of labor/materials and Project Management; and
• applying innovation to reduce energy usage and end cost of water.
The table below demonstrates the impact of the Supply Market Drivers on the
Procurement Strategy:
Table 3 Supply Market Drivers Desalination System
Supply Market Notes Impact on Procurement
Driver Strategy
Buyer Concentration of activity found There are limited
concentration within Arabian Peninsula and arid opportunities to leverage
areas of North America regional activity or
experience in the subject.
Customers are state bodies or Procurement will be
international donor agencies7 competing with large
projects for expertise and
supply capacity
Buyer volume Statistics on future similar projects Integrating all the Sub
are not available, however an components of the Project
extrapolation of current activity into one Contract provides
indicates there are about 400 opportunity to improve the
projects globally which will require attractiveness of the
Supply of 8Desalination project for the key suppliers
Construction facilities. discussed in
Buyer switching The costs (financial and Once a lead contractor is
costs organizational) of switching selected there will be
suppliers during the life of the limited appetite or ability to
project are prohibitive. switch to an alternative
supplier during the life of
the project – unless there is
catastrophic failure to
deliver.
3.3. Market Sector Dynamics
Analysis of recent similar projects indicate that within a D-B-O model the Lead
Contractor with operational expertise in Water Technology will often partner in
5 Henthorne, Lisa (June 2012). "The Current State of Desalination". International
Desalination Association. Retrieved September 5, 2016
6 International Desalination Association 2017 Report
7 Open Sources including International Water Association, International Desalination
Association
8 Open Sources including International Water Association, International Desalination
Association
8
consortium with EPCM (Engineering, Procurement, Construction and Management)
companies and Desalination Plant suppliers to implement and operate network
infrastructure.
This is undertaken to:
o better manage risk and value in associated activities (e.g. Logistics,
Drafting, Project Management, Piping, etc.)
o provide single point of accountability
With regards to the implementation of desalination plants, the Supply Market is
fragmented with no one organization estimated to claim more than 8% of global
activity. 9
The below Water Technology organizations (water supply operators) together cover
an estimated 40%10 of new activity within the sector. Initial research indicates that
all have capability to deliver within the Pacific Region. Pre-Qualification process will
validate this further and identify capable mid-tier Water Technology operation
Organizations.
1. Veolia - France
2. Doosan Group – South Korea
3. General Electric – United States of America
4. Suez Water Environment France
5. IDE - Israel
6. Acciona - Australia
7. Hyflux – Singapore
The market for Solar Photovoltaic Power Plant is defined as Fabrication, Supply and
Installation of Solar Photovoltaic Power Plants
• The market dynamics analysis for Sub Component 1.3 indicates that growth
of the demand market is currently retracting due to reduction in spend by the
public sectors of Japan and United States of America.
• The supply market is focused on China and Taiwan with these two regions
providing up to 68% of global supply in 2017.
• There is currently excess capacity of supply within the fabrication market
3.4. Conclusion
The existing relevant sectoral local contractors are lacking capacity of capital asset,
equipment and expertise for the project. Regional and global (International)
contractors and suppliers will need to be attracted to compete for procurement of
works, goods and non-consulting services. Contracts will need to be bundled into
sufficiently large packages to offset mobilization costs of international contractors
and/or suppliers.
9 "Water and Wastewater Treatment Systems Market - Global Opportunity Analysis and Industry
Forecast (2017-2022)" https://www.prnewswire.com/news-releases/global-water-and-
wastewater-treatment-systems-market-2014-2022-300610848.html
10 Open Sources including ‘Global Water Intelligence Magazine’ 2018 March, International
Desalination Association
9
4. Procurement Trends
The project will procure contracts of Works, Goods and Consulting services.
Procurement of works and goods will include desalination plant, water supply
network and solar PV plant. Consultants would be hired for specialized technical
services, project management, fiduciary, safeguards, and monitoring and
evaluation services. Combining activities into a single large package of contract
would likely attract higher quality international contractors.
It is important that the project take up the valuable experiences by other
development partners especially the project co-financier ADB in the procurement
and implementation of desalination plants in the Marshall Islands, adopting robust
plant designs adapted to the service provider’s limited operational capacity and
difficult access to spare parts, and using DBO arrangements to support the
progressive development of local capacity. It is also important to design simple
water networks that can be operated and maintained by PUB. Components used in
the reticulated network systems were specified to be readily available from
domestic and regional markets, and materials and component to conform standards
prevailing in the region whenever possible to match supplier’s inventories.
Due to the small and geographic constraints on the country with the limited market
capacity, it is suggested to bundle the various design and construction of various
activities under the Project (as feasible), to attract international interest.
10
5. Procurement Risk Analysis
The project includes features, such as a Design-Build-Operate (DBO) mode of
delivery, that provide for a contract environment that is unfamiliar in Kiribati. These
functions, including project management, accounting, and procurement services of
DBO, will be assisted by the establishment of a Project Management Unit (PMU)
within MISE, staffed by appropriately qualified and experienced expertise through
the entire procurement cycle of the project. A subsequent Project Implementing
Assistance Consultancy (PIAC) is also expected to continue support to the PMU in
the implementation phase with a focus on contract administration and construction
supervision. These measures are adequate to mitigate the high project procurement
risk that is faced by the project 11.
Risk
Risk Description Description of Mitigation owne
r
Procurement Capability/Capacity of Hiring of procurement and other MISE
the Implementing Agency (MISE) is Technical Assistance (TA) required to
insufficient to: bolster the capacity of the Borrower
• Deliver the outputs required to implement the project.
• Align with Donor Agency
governance controls TA assigned to the PMU will assist in
package preparation and delivery of
project.
Process Governance risk: Other than The PMU will keep complete MISE
the KFSU there is insufficient record documentation of all procurement
keeping protocols which limit ability of related activities
any audit to identify nonconforming
practices and purchasing decisions
Contract Management: Limited Employment of professional project MISE
capability and capacity in Contract management consultants to support
Management within MISE will the project during various stages of
compromise timely execution of the the project life
contract
Supply Market: Limited appetite from Integration of relevant Sub MISE
Supply Market for operating in high risk Components into Lead Contract(s)
environment increases the margin presents the project as a stronger
required by suppliers opportunity for suppliers
11Adapted from the ADB’s Procurement Risk Assessment dated April 2018 for the same
project
11
6. Procurement Approach
6.1. Procurement Objective
Ensuring timely and efficient availability of consultants and contractors in line with
the Procurement Plan (or the updated Procurement Plan) in compliance with the
Procurement Regulations applicable to the project.
The procurement objectives within this project are:
1. Ensuring optimal selection of Lead Contractor in line with the approved
Procurement Plan and in compliance with the Procurement Regulations for
IPF Borrowers of the World Bank, July 2016, revised November 2017 and
August 2018 (Procurement Regulations).
2. Reducing the inherent operational and maintenance sustainability risks of the
project without onboarding an excessive risk premium from the supply
market
6.2. Recommended Procurement Approaches for the Project
The table below summarizes the procurement method and costing mechanisms to
be used for all components of this project.
WP-01: SWRO Desalination Plant & Water Distribution Networks (Design-
Build-Operate Contract) – Estimated cost: US$38 million
A Single Lead Supplier will be contracted under a Master Service Agreement to
deliver the following components12:
o Subcomponent 1.1 – SWRO Desalination Plant
o Subcomponent 1.2 – Construction of New Water Distribution Networks
and Rehabilitation Works
o Subcomponent 2.1 – Operation and Maintenance of the SWRO
Desalination Plant and water supply network, water utility capacity
development
Attribute Selected Justification Summary/Logic
arrangement
Specifications Performance The O&M component of this contract
will include specific performance
targets for operation and
maintenance, such as continuity of
service, water quality compliance,
non-revenue water, energy efficiency
and customer responsiveness
Sustainability Yes Desalination plant will be critical water
Requirements supply infrastructure
Contract Type Design, Build, Operate,
Maintain
Pricing and A. Lump Sum DBO contract will include delivery of
costing infrastructure as well as long term
mechanism O&M
12MISE’s design consultant will review packaging of the various components during the
Project Design Advance (PDA) phase in close consultation with MISE and PUB. The
procurement plan will be updated to reflect the final contract packaging arrangements.
12
Supplier Collaborative
Relationship
Price A. Percentage Minimum 5-year duration of DBO
Adjustments contract operation period requires a
mechanism for price adjustments
Form of ADB SBD for DBO Based on FIDIC gold book for DBO
Contract (Terms Contract (customized)
and Conditions)
Selection A. Requests for Bids
Method (RFB)
Selection A. Public Private
Arrangement Partnerships (PPP)
Market A. Type of Competition
Approach 1. International
B. Number of
Envelopes/Stages
1. Single Stage, 2
Envelope Procedure
Pre / Post A. Pre-Qualification As there are only a limited number of
Qualification B. Post-Qualification companies that provide the
(possible) technology and would have the
interest and capability to deliver it in a
remote Pacific location, it may be
possible to move directly to a two-
stage bidding process. This will be
confirmed through the market
assessment: the
likely suppliers will be identified, and
the appropriate process will be
considered.
Evaluation A. NA
Selection
Method
Evaluation of A. Adjusted Bid Price Financial evaluation will be based on
Costs B. Life-Cycle Costs the all life cycle cost analysis of the
facility procured
Domestic No Not applicable given scale of DBO
Preference plant
Rated Criteria To be determined during
design stage
13
WP-02: Solar Photovoltaic Array – Cost Estimate: US$9.6 million
A single lead supplier will be contracted to deliver:
o 1.3 – Solar photovoltaic power plant
o Associated High Voltage transmission and Network Upgrades
Attribute Selected arrangement Justification
Summary/Lo
gic
Specifications Performance
Sustainability Requirements Yes
Contract Type F. Design,
Supply, and Installation
(Plant)
Pricing and costing B. Lump Sum
mechanism
Supplier Relationship A. Adversarial
Price Adjustments B. None, fixed price
Form of Contract (Terms and ADB SBD for Plant
Conditions)
Selection Method B. Requests for Bids (RFB)
Selection Arrangement B. Competitive Dialogue
Market Approach C. Type of Competition
2. International
D. Number of
Envelopes/Stages
2. 1 Stage, 1 Envelope
Pre / Post Qualification B. Post-Qualification
Evaluation Selection Method NA
Evaluation of Costs C. Adjusted Bid Price
Domestic Preference No
Rated Criteria NA
CSF-2: Project Implementation Assistance – Cost Estimate: US$2.10 million
An international Engineering Consultant will be recruited to support MISE in project
implementation.
Attribute Selected arrangement Justification
Summary/Logic
Specifications Conformance Terms of Reference
applicable
Sustainability Yes Conformance with
Requirements safeguards
requirements
Contract Type F. Other: Traditional Consulting
Services
Pricing and costing D. Time and Materials Time-Based contract is
mechanism envisaged due to
14
uncertainty the scope,
output, and the length
of the services.
Supplier Collaborative
Relationship
Price Adjustments C. Percentage
Form of Contract ADB Consultant’s Services (Time-
(Terms and Based)
Conditions)
Selection Method D. Direct Selection Single Source Selection
(SSS) - extension of PDA
Consultant, subject to
satisfactory
performance
Selection NA Extension of PDA
Arrangement Consultant, subject to
satisfactory performance
Market Approach 5. No Competition – Direct
Selection
C. Negotiations (Yes)
WASH Awareness Program - Part B “WASH Community Partnership”– Cost
Estimate: US$0.96 million
An international Non-Governmental Agency (NGO) will be recruited to design and
implement:
o Component 3: Water, sanitation and hygiene awareness
Attribute Selected arrangement Justification
Summary/Logi
c
Specifications Performance
Sustainability Requirements Yes
Contract Type F. Other: Traditional Consulting
Services___________________
Pricing and costing C. Lump Sum
mechanism
Supplier Relationship B. Collaborative
Price Adjustments C. None, fixed price
Form of Contract (Terms and D. State any special conditions of
Conditions) contract
Selection Method C. Request for Proposals (RFP)
Selection Arrangement C. Competitive Dialogue
Market Approach A. Type of Competition
3. International
B. Number of Envelopes/Stages
2. Two Envelopes
3. Single Stage
Pre / Post Qualification C. Shortlisting
Evaluation Selection Method D. Quality Based Selection (QBS)
Evaluation of Costs D. NA Not applicable for
QBS
Domestic Preference No
Rated Criteria yes Scoring system
for proposals
15
6.3. Preferred arrangement for low value, low risk activities
Comp. Activity Category Estimated Procurement
cost arrangement
(US$
million)
2.3 Preparation and technical Consulting 0.2 IND
assistance for the Services
implementation of
Sustainable Management
Plans
2.3 Preparation of Sector Consulting 0.2 CQ
Regulation Studies Services
3 WASH awareness program- Consulting 0.06 IND
Part C “Walk the Talk” Services
4 Project Manager/Tech. Consulting 1.4 IND
Advisor Service
4 Deputy Project Manager / Consulting 0.15 IND
Procurement Specialist Service
4 Project Accountant Consulting 0.35 IND
Service
4 Safeguards Manager Consulting 0.30 IND
Service
4 Social Development & Consulting 0.18 IND
Gender Specialist Service
5 Technical Assistance for the Consulting 0.2 CQ
implementation of Sanitation Services
pilots
5 Sanitation Pilots construction Works 1.0 Small Works
activities
16
7. Summary of PPSD to inform the Bank’s preparation of
the PAD
Institutional Arrangements
Project Implementing Agency (IA) will be the Ministry of Infrastructure and
Sustainable Energy (MISE). MISE has some experience in implementing projects
under the ABD and World Bank finance. However, experience and capacity in
implementing project with DBO mode is still limited. A Project Management Unit
(PMU) within MISE, staffed by appropriately qualified and experienced expertise
with be established. Most of project management responsibility i.e. preparation of
tender documents, contract administration, supervision of works, etc. will be with
the MISE. Kiribati Fiduciary Support Unit (KFSU) established under the MFED and
experienced with donors funded projects will support MISE on fiduciary aspect
including procurement and financial management.
Procurement arrangement.
Due to the complexity of the project and the limited capacity, the implementing
agency will face difficulties in implementing the project following two sets of rules
and procedures in parallel. At the request of Government, the WB and ADB teams
agreed to follow the ADB (the main financier), the project will adopt Alternative
Procurement Arrangement (APA) instrument as per the section III.F of the Bank
Policy “Procurement in IPF and Other Operational Procurement Matters” for
components 1 to 4 of the project. For these components, the Project will relay and
apply the procurement rules and procedures of other Multilateral Development
Bank – ADB. ADB will take lead in providing the implementation support and
monitoring of project procurement activities under the project. Subcomponent 2.3
and Component 5 of the project will be implemented following Bank procurement
rules and procedures.
Subcomponent 2.3 (water reserves management, sector regulation and
KAP-III follow-up activities) and Component 5 (Sanitation pilot): The
management of procuring these components will be delivered outside of the
Alternative Procurement Arrangement, based on World Bank procurement
requirements.
The procurement strategy is in place to:
• Increase market tension and attractiveness of the main DBO package
• Minimize the risk of misalignment of the various phases of delivery
• Minimize administrative and transactional requirements
Procurement Methods:
Procurement of Works (Estimated at US$48.6m) will include International
Competitive Bidding and NCB procedures are expected be followed for
procurement of works.
Procurement of Goods (Estimated at US$0.1m) would include ICT equipment,
hardware and software, and possibly office equipment and facilities. Goods would
be carried out under shopping procedures.
Procurement of Consulting Services (Estimated at US$6.1m). Consulting services
will include recruitment of individual consultants to manage and oversee the
project for MISE. Short-term consultant services for specialised positions such as
Project Manager, Fiduciary, Safeguard, Monitoring and Evaluation Specialist.
17
18
PROCUREMENT
Kiribati : South Tarawa Water Supply Project
PLAN
General Information
Country: Kiribati 2018-09-03
Bank’s Approval Date of the Original Procurement Plan:
2024-12-12
Revised Plan Date(s): (comma delineated, leave blank if none)
Project ID: P162938 GPN Date:
Project Name: South Tarawa Water Supply Project
Loan / Credit No: / , IDA / D5230
Ministry of Infrastructure and Sustainable Energy
Executing Agency(ies):
WORKS
Activity Reference No. / Estimated Actual Am Bid Evaluation Report
Loan / Credit N Market Approac Procurement Pro Prequalification High SEA/SH R Procurement D Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Contract Complet
Description Component Review Type Method Amount (U ount (US$ 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$) ) for Award
Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned
KI-MISE-261647-CW-RFB / Su
Improvement of Water Suppl Open - Internationa Single Stage - Two E Other (with field f 17,201,795.0 2027-06-3
pply and install 2 desalinatio IDA / D5230 Prior Request for Bids 0.00 Canceled 2021-11-05 2021-11-06 2021-11-07 2022-02-19 2022-03-26
y Services l nvelope or explanation) 0 0
n plants for South Tarawa
GDW-2/1 GDW-2/2 / Works a
Improvement of Water Suppl Open - Internationa Single Stage - Two E Other (with field f 17,201,795.0 2024-07-2
nd Management Services, So IDA / D5230 Post Request for Bids 0.00 Canceled 2023-08-23 2023-08-22 2023-08-28 2023-08-28 2023-10-09 2023-12-22 2024-01-26
y Services l nvelope or explanation) 0 4
uth Tarawa, Kiribati
GDW-1 / Supply and install 2 Improvement of Water Suppl Open - Internationa Single Stage - Two E Other (with field f 17,201,795.0 2026-06-0
IDA / D5230 Post Request for Bids 0.00 Signed 2024-04-03 2021-10-27 2024-06-19 2021-10-26 2024-06-19 2021-07-28 2024-04-08 2024-08-28 2021-07-27 2024-11-10 2021-11-30 2024-12-15 2022-06-21
desalination plants for South y Services l nvelope or explanation) 0 8
Tarawa
National Procure
KI-MISE-459236-CW-RFQ / D ment Document -
Request for Quota Open - Internationa Single Stage - One E Pending Imp 2025-10-3
esign and Build Pilot Onsite S IDA / D5230 Sanitation Pilots Post 1 Envelope proce 800,000.00 0.00 2025-03-08 2025-05-03
tions l nvelope lementation 0
anitation Works ss (Non Bank-SPD
)
GOODS
Activity Reference No. / Bid Evaluation Report
Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission /
Description Component Review Type Method and Recommendation Signed Contract Contract Completion
o. h cess (Y/N) ount (US$) (US$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes
for Award
Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual
KI-MISE-102177-GO-RFQ / Pr
ocurement of new laptop co
Water, Sanitation and Hygie Request for Quota Single Stage - One E
mputers for Community Enga / Post Limited 4,000.00 4,642.38 Completed 2019-04-02 2019-04-24 2019-04-21 2019-06-06 2019-06-02 2019-06-25
ne Awareness tions nvelope
gement Specialists (2) and S
enior Water Technician (1) ro
lling over from KAP III.
NON CONSULTING SERVICES
Activity Reference No. / Bid Evaluation Report
Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission /
Description Component Review Type Method and Recommendation Signed Contract Contract Completion
o. h cess (Y/N) ount (US$) (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$) Notice equest for Proposals as Issued Proposals / Minutes al Proposal
otiated Contract
Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual
KI-MISE-459240-CS-CQS / Mo
nitoring & Evaluation of the Consultant Qualifi Open - Internationa Pending Impleme
IDA / D5230 Sanitation Pilots Post 300,000.00 0.00 2024-12-09 2024-12-30 2025-02-12 2025-03-14 2025-04-18 2025-10-15
On-Site Sanitation Pilot Work cation Selection l ntation
s and Marketing Systems
INDIVIDUAL CONSULTANTS
Activity Reference No. /
Loan / Credit N Market Approac Contract Type Estimated Amo Actual Amount Invitation to Identifie Draft Negotiated Cont
Description Component Review Type Method Process Status Terms of Reference Signed Contract Contract Completion
o. h unt (US$) (US$) d/Selected Consultant ract
Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual
KI-MISE-75844-CS-INDV / Co Individual Consult
/ Post Direct 14,000.00 27,811.65 Signed 2018-08-28 2018-09-05 2018-09-07 2018-09-12 2018-09-28 2018-09-14 2018-11-02 2018-09-23 2019-05-01
mmunity engagement specia ant Selection
list
KI-MISE-75845-CS-INDV / Co Individual Consult
/ Post Direct 14,000.00 27,205.04 Signed 2018-08-28 2018-09-05 2018-09-07 2018-09-12 2018-09-28 2018-09-14 2018-11-02 2018-09-23 2019-05-01
mmunity engagement specia ant Selection
list
KI-MISE-75846-CS-INDV / No Individual Consult
/ Post Direct 14,000.00 27,205.04 Signed 2018-08-28 2018-09-05 2018-09-07 2018-09-11 2018-09-28 2018-09-14 2018-11-02 2018-09-23 2019-05-01
n revenue water specialist ant Selection
KI-MISE-102180-CS-INDV / W
ater & Sewerage Tariff Revie
w - Public Utilities Board (PU
B), Kiribati Institutional Strengthening a Individual Consult
/ Post Open 37,103.00 54,292.00 Signed 2019-04-23 2019-04-25 2019-05-26 2019-06-18 2019-06-16 2019-06-28 2019-07-14 2019-08-04 2020-01-10
The objective of this consulta nd Implementation Support ant Selection
ncy is to propose revised wat
er & sewerage tariffs consist
ent with affordability, equity
and sustainability objectives i
n South Tarawa.
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