ACCESS: Accelerating Transport and Trade Connectivity in Eastern South Asia - Bangladesh Phase 1 (P176549) SYLHET- CHARKHAI-SHEOLA HIGHWAY IMPROVEMENT PROJECT Project Procurement Strategy for Development (PPSD) For Roads and Highways Department (RHD) Updated on October 20, 2024 1 2 TABLE OF CONTENTS ABBREVIATIOS AND ACRONYMS .................................................................................................1 1. PROJECT OVERVIEW............................................................................................................2 A. PROJECT DESCRIPTION ......................................................................................................2 2. STRATEGIC ASSESSMENT OF OPERATING CONTEXT AND BORROWER CAPABILITY .............................................................................................................................4 2.1 OPERATIONAL CONTEXT ...................................................................................................4 2.2 ASSESSMENT OF BORROWER CAPABILITY & PIU .....................................................7 3. PROCUREMENT RISK ANALYSIS (BLPA) .....................................................................14 4. PROCUREMENT STAKEHOLDER ANALYSIS ...............................................................17 5. PROCUREMENT OBJECTIVES..........................................................................................18 6. PROCUREMENT STRATEGY IN GENERAL (BLPA) ....................................................19 7. PROCUREMENT APPROACH OPTIONS AND RECOMMENDATION (BLPA) .......20 8. SUMMARY OF PPSD TO SUPPORT THE PREPARATION OF THE PAD BY THE BANK ......................................................................................................................................25 9. INITIAL PROCUREMENT PLAN FOR THE MAJOR PROCUREMENT ACTIVITIES: (BLPA) ............................................................................................................27 9.1 WORKS PACKAGES: ................................................................................27 9.2 GOODS PACKAGES: ..................................................................................28 9.3 CONSULTING SERVICE PACKAGES: ......................................................29 9.4 NON-CONSULTING SERVICE PACKAGES: .............................................30 ABBREVIATIOS AND ACRONYMS .................................................................................................1 1. PROJECT OVERVIEW............................................................................................................2 B. PROJECT DESCRIPTION ......................................................................................................2 2. STRATEGIC ASSESSMENT OF OPERATING CONTEXT AND BORROWER CAPABILITY .............................................................................................................................4 2.1 OPERATIONAL CONTEXT ...................................................................................................4 2.2 ASSESSMENT OF BORROWER CAPABILITY & PIU .....................................................4 2.3 MARKET RESEARCH AND ANALYSIS .............................................................................8 3. PROCUREMENT RISK ANALYSIS (RHD) ......................................................................14 4. PROCUREMENT STAKEHOLDER ANALYSIS (RHD) ..................................................16 5. PROCUREMENT OBJECTIVES..........................................................................................18 6. PROCUREMENT APPROACH OPTIONS AND RECOMMENDATION (RHD) ........18 7. SUMMARY OF PPSD TO SUPPORT THE PREPARATION OF THE PAD BY THE BANK ......................................................................................................................................23 8. INITIAL PROCUREMENT PLAN FOR THE MAJOR PROCUREMENT ACTIVITIES: (RHD) .............................................................................................................25 3 ABBREVIATIOS AND ACRONYMS Abbreviation / Full Terminology Term ADB Asian Development Bank BEC Bid Evaluation Committee CPTU Central Procurement Technical Unit CQS Consultant’s Qualification Based Selection e-GP Electronic Government Procurement GOB Government of Bangladesh ICS Individual Consultant Selection IDA International Development Association IPF Investment Project Financing MoRTB Ministry of Road Transport and Bridges MTD Model Tender Documents NPF New Procurement Framework PE Procuring Entity PIU Project Implementation Unit PMU Project Management Unit PPR Public Procurement Rules 2008 PPSD Project Procurement Strategy for Development Procurement Procurement Regulations for IPF Borrowers, dated Regulations July 1, 2016 QCBS Quality and Cost-Based Selection RFB Request for Bid RFP Request for Proposal RHD Roads and Highways Department SPD Standard Procurement Documents STEP Systematic Tracking of Exchanges in Procurement TOR Terms of Reference US$ United States Dollar WB The World Bank 4 1. Project Overview Country : Bangladesh Full Project Name : Sylhet-Charkhai-Sheola Highway Improvement Project IDA Financing : USD 302.45 Million (US$) Project Number : P176549 Summary of : The Project Development Objective (PDO) is to facilitate Project reliable and fast movement of traffic from Sheola Land Development Port to Sylhet and other RHD road network, thus Objectives (PDO) enhancing trade and commerce activities by expanding regional connectivity. A. Project Description Bangladesh’s trade with South Asia and Southeast Asia has been on the rise since the early 2000s, and about 40% of total trade currently takes place with these regions. The operation of the South Asian Free Trade Area (SAFTA) since 2006 and duty-free market access for most products in the Indian markets since 2011 have created potential opportunities for higher trade with South Asia, particularly with India. The development of cross-border connectivity between these neighboring countries will open opportunities to further enhance trade. Bangladesh has the potential to become a sub-regional transport and trans-shipment center, linking the heavily populated South Asian region to the burgeoning markets and countries to the north and south- east of Asia. It borders mostly with India and a small section with Myanmar, and is geographically close to Bhutan and Nepal, as well as Kunming – the key transportation hub in the south-west of the People’s Republic of China (PRC). Road transport being the predominant mode of transport in Bangladesh accounting for about 80% of total traffic moved, road quality does not correspond to the Subregional corridor standards. The existing highway links are primarily 2-lane roads. Most of Bangladesh’s road network needs to be upgraded for handling modern diversified vehicles. However, Bangladesh has already taken many steps to strengthen its regional and international transport connectivity; specially aiming to facilitate trade between Bangladesh and the north-eastern states of India, the Indian state of Seven Sisters, Bhutan, Nepal, and Myanmar. The Road Master Plan 2009 targeted to expand the major roads and highways of Bangladesh to four lanes. Because of its strategic position on the border with Northeast India and the potential to greatly enhance trading, the Government of Bangladesh declared Sheola Land Customs Station as a Land Port in 2015. The current level of traffic is expected to rise over time, particularly after the location is developed into a complete land port. The World Bank-funded Bangladesh Regional 5 Connectivity Project is currently constructing Sheola Land Port. The major import items include coal, stone, cement clinker and agricultural products. Manufactured food, plastic, ceramics, and other commodities are among the most popular exports. The Sylhet-Charkhai-Sheola Highway Road segment is an important part of BCIM corridor and SASEC Road Corridor 5. The BCIM corridor will cover encompassing an estimated 440 million people in China's Yunnan province, Bangladesh, Myanmar, and Seven Sisters in North Eastern India through the combination of road, rail, water and air linkages in the region. The BCIM envisages greater market access for goods, services and energy, elimination of non-tariff barriers, better trade facilitation, investment in infrastructure development, and joint exploration and development of mineral, water, and other natural resources. SASEC Road Corridor 5 links central and northeastern Bangladesh with the northeastern states of India to promote both bilateral trade and links in the northeast to the “Trilateral Highway” and the Bangladesh ports in the south. Lastly, the upgradation of Sylhet-Charkhai-Sheola Highway Road, one of the subprojects under Component 4: Regional Connectivity Infrastructure of BBIN (Bangladesh-Bhutan-India-Nepal) cargo route. These international economic corridors provide international traffic to several land ports and seaports. Also, through these corridors, there will be cross border movement of goods and passengers. Development of this road will enhance facilitation of faster and safer movements of passenger and cargo. The project road run across Sylhet District. Sylhet is in the heart of the tea growing area and is the hub of the tea industry in Bangladesh. The tea industry accounts for 3% of global tea productions and employs more than 4 million people. The construction industry is also booming in Sylhet, and it is a center of the oil and gas sector in Bangladesh. There are a total of eight gas fields located in this region; out of which 2-3 natural gas/oil fields (Koilash gas field, Golapganj oil field etc.) are by the side of the project road within the first 20 km. It is the home to the largest natural gas reserves in the country. A special economic zone (SEZ) has been established by the Government in Sylhet Division at Goainghat. Sylhet is one of the most popular tourist destinations in Bangladesh. The province offers tourists with variety of options ranging from natural to commercial. The existing 43.1-km long project road starts at Kadamtali about 1 km from south end of Keane Bridge in Sylhet City and ends at Sheola Land Port at border with India. It passes through several markets and built-up area of Sylhet Sadar, Dakshin Surma, Golapgonj & Beanibazar Upazillas under Sylhet District. The road alignment is straight except for few sub-standard bends. The road from km 15.8 to 17.6 passes through Golapganj Upazila, a built-up area that is heavily encroached on both sides by both residential and commercial buildings. 6 Within this 1.8 km section, there are several crossroads. There are 5 major intersections along the alignment and two major bridges (Sawdakhal Bridge & Sheola Bridge). The road also crosses two rivers: one is the Sodha Canal (existing Sawdakhal Bridge length is about 150m) and another is the Kushiyara River (existing Sheola Bridge length is about 230m). The Kushiyara River is the deepest river in this project’s direct area of influence with depth of about 37m from bridge top. Both bridges are in good conditions. The project road passes through a crowded marketplace in Sylhet town along the side of Surma River for about 2 km. This section of the road is a 2-lane dual carriageway in Sylhet town area up to 7 km. The section of the road from Sylhet to Charkhai and from Charkhai to Dubagh is regional highway and the section from Dubagh to Sheola is zilla1 road. The 2-lane dual carriageway continues to Golapganj, and the pavement is in poor condition. The pavement condition after Golapganj is fair except in market areas. The Sylhet-Charkhai-Sheola Road is a vital link in the national highway network. There is no separate provision for slow moving vehicular traffic (SMVT) or non- motorized traffic (NMT). There are capacities constraints caused by congested junctions, roadside parking, markets, and built-up areas. Road safety on the existing road is inadequate because it is overcrowded with different types of vehicles, including rickshaws, bicycles, motorcycles, cars, buses, and trucks. When vehicles break down this reduces the highway to a single lane leading to traffic delays and congestion. The road is generally in deplorable state, with the riding conditions being particularly terrible between Charkhai and the border point. Undoubtedly, it has a detrimental effect on both cross-border commerce at Sheola Land Port and agricultural growth in the surrounding region. Procurable activities include procurement of Works, Goods and Services with an estimated value of 83% of the total RHD component. On the other hand, non-procurable activities with an estimated value of 17%, include taxes, regulatory fees, land acquisition and resettlement costs and staff salaries 2. Strategic Assessment of Operating Context and Borrower Capability 2.1 OPERATIONAL CONTEXT Bangladesh now has a good foundation of public procurement system that include a well-functioning nodal agency- The Central Procurement Technical Unit (CPTU)- to regulate procurement, procurement laws with rules and associated documentations, an extensive capacity development program, a single electronic government procurement (e-GP) portal for the entire country 7 (www.eprocure.gov.bd), on-line performance measurement mechanism, and a citizen engagement system supported by a comprehensive strategic and behavioural change communication program. In a rapidly changing economic environment, efficient project implementation plays a pivotal role in achieving country’s developmental outcomes. In Bangladesh context, it is estimated that the annual expenditure on public procurement accounts for a significant percent of the annual national budget of the Government. However, project implementation vis-à-vis procurement delays has been identified as a major contributor for slow utilization of development budget. Bangladesh has been making sustained efforts over the years to bring about a systemic change in its public procurement environment. The country has been transforming rapidly its public procurement environment by shifting gradually from traditional procurement practices to international standards through digitization of systems and modernizations of processes. 2.2 ASSESSMENT OF BORROWER CAPABILITY & PIU The assessment of client capability and PIU identifies the below factors, both enablers and constraints, which may have an impact on both the delivery of the Project and the procurement approach. Roads and Highways Department (RHD) will be responsible for implementing the overall project. RHD has developed a Project Procurement Strategy for Development (PPSD) along with the initial procurement plan including the activities required. The PPSD will spell out the detailed procurement arrangements for the project including identification of procurement related risks and detailed risk mitigation measures. All the procurement under the project will be carried out by the PIU. The responsibility of the PIU in terms of procurement will include preparation of procurement documents such as Terms of Reference (ToR), technical specifications, BoQs, bidding documents, contract management to ensure quality, timeliness, task completion. They will also work as the evaluation committee members for relevant activities. The overall responsibility of procurement will lie with the PIU, which will include, but not limited to, (i) procurement plan in STEP; (ii) procurement process (bidding/ RFP documents, invitation, evaluation, awarding, signing the contract, payments after certification by PD etc.) (iii) procurement documents in STEP, (iv) keeping record for review by the Bank, etc. RHD has extensive experience implementing transport projects and have adequate capacity to implement high value contracts. It has been involved in the government’s public procurement reform program to roll-out e-GP in 2013 and are well conversant with countries’ Procurement legislation. RHD is currently implementing several Bank financed procurements, though 8 the organization is less familiar with the Bank’s Procurement Regulations as its previous engagement with the Bank dates to 2006. It has been identified to take necessary measures to enhance procurement capacity, including the engagement of fiduciary experts by RHD to mitigate the risk of delays in procurement evaluation, contract awards and payments to contractors. The experts would also assist in vetting variations and avoiding cost overruns. The Institutional procurement capacity of RHD is moderately strong having core procurement wing headed by a Superintending Engineer. The Procurement wing has two distinct Divisions working under its direct jurisdiction; (a) Contract Evaluation Division (headed by an Executive Engineer) and (b) Documentation and Procurement (Civil) Division (headed by an Executive Engineer). The staff comprises of 1 Sub-divisional Engineer, 4 Assistant Engineers, and 6 Sub-Assistant Engineers within different parts of the Procurement wing. All the above posts are Cadre posts, meaning the persons posted here essentially have engineering background, mostly civil engineering. Since the main function of RHD is construction and maintenance of roads and highways, this academic expertise is appropriate when it comes to design, specification, costing, contract management, etc. 2.2.1 Experience of Implementing Similar Projects and Implementation WB Projects Procurement under the project will be carried out in accordance with the World Bank Procurement Regulations for IPF Borrowers, Fourth Edition, November 2020 (Procurement Regulations) and the provisions stipulated in the Project Procurement Strategy for Development (PPSD) and the procurement plan that may be updated from time to time. The project will be subject to the World Bank’s Anticorruption Guidelines, dated October 15, 2006, revised in January 2011, and as of July 1, 2016. The project will use the Systematic Tracking of Exchanges in Procurement (STEP) to plan, record and track procurement transactions. RHD was part of the Bank-financed Public Procurement Reform Project and recently was assessed for the Bank-financed the Western Economic Corridor and Regional Enhancement (WeCARE) project and is the implementing agency for WeCARE project. Its procurement capacity is relatively strong in the Bangladesh context and increased use of e-procurement has improved governance. RHD officers have received training on public procurement (i.e. The Public Procurement Rules, 2008) organized by Central Procurement Technical Unit (CPTU). However, not all officers have experience of the new procurement framework (PF) of the Bank. The proposed Project will provide the opportunity to gain knowledge on World Bank Procurement Regulation (PR), July 2016. 9 2.2.2 Need for Hands-on Support RHD has skills and capacities to handle procurement on national and international scale. Arrangement for hiring Project Management Consultant firm, Design and Supervision Consultant firm, etc. has been included in the project. In addition, provision for Deputy Project Directors and Assistant Project Directors within the implementing agencies are also included in the project. Considering all these factors, no hands-on support will be required for procurement of the project. 2.2.3 Contract Management Capability and Capacity Contract management is an operational risk, specifically, in project implementation it appears that there is a greater need to improve contract management, as there are recurrent payment issues and contract termination issues. Project Management Consultancy firm, Design Supervision Consultancy firm etc. will be there to look after the contract management activities. RHD is expected to improve the contract management with its resources and willpowers. For supervision work, consultant firms require a formal delegation of the RHD to allow the firm to act as Engineer in the construction contracts. The Monitoring Circle of RHD has a significant role to oversee the procurement activities of RHD. It has one core team and three supporting teams for visiting sites to inspect compliance of works. There is a Cabinet requirement that RHD team needs to monitor at least 7 contracts per month and report accordingly. The respective field units have to address at least 70% of the recommendations advised by the Monitoring team. 2.2.4 Complaints Management and Dispute Resolution Techniques Complaint management will be guided by WB Regulations for borrower and Country system as applicable, and dispute resolution will be governed by contract conditions/provisions. The Public Procurement Act, 2006 and the Public Procurement Rules, 2008 (PPR) with subsequent revisions provide for complaints handling. These provisions are robust at Procuring Entity (PE) level and CPTU is available to provide the authoritative interpretation of the procurement legislation unless the matter is referred to court. Further, a Complainant not satisfied with the outcome of the administrative review by the PE may complain to CPTU, which hosts independent Review Panels. The decision of a Review Panel is binding upon the parties. Under the procurement law, contract award decisions by the Cabinet Committee for Government Purchase (CCGP) cannot be appealed. The laws also empower individual PEs to debar firms and publish their debarment decision on the CPTU website. Under the law, PEs must maintain 10 documentation with respect to any appeal or complaint concerning procurement proceeding for at least 5 years. In addition, any complaint received in any form will have to be recorded in the STEP system of the Bank. This will add an additional layer in risk mitigation. 2.2.5 Procurement Capacity RHD has strong background to handle the works contract in routine and urgent situations. The built-in engineering section engaged for procurement functions is considered as added advantage. The implementing agency has sound experience with Development Partner financed projects. In addition, the project shall have some internal arrangement for recruiting a team of consultants for Project Management Consultancy, Design Supervision consultancy etc. In addition, provision for Deputy Project Directors and Additional Project Directors within the implementing agencies are also included in the project. The project will be using latest Procurement Framework and the associated procurement regulations. In recent years, RHD has done very few procurements using the traditional method, it has almost completely shifted to the e-procurement system. E-procurement is generally considered less subject to maneuvering by individuals. 2.2.6 Lessons learned from the implementation of other similar projects RHD has experience of implementing similar type of Development Partner funded projects including SASEC, Cross-border, and BRT etc. E-GP has reduced the number of complaints related to procurement, ensured transparency and the e-GP process needs lesser time than the manual tendering process. Numerous training and workshops related to procurement, contract management and environmental and social safeguards have been carried out under those projects. 2.2.7 Conclusions on Client Capability and PIU Assessment RHD’s procurement will account for 100% of the total procurement cost. As a whole, Works procurement will cover approximately 92.3% of total cost; while Goods and Services will cover 7.7%. There is no goods package of this project to be implemented under Bank finance. One important drivers of the risk are the complex nature of works contracts that are to be implemented by RHD, particularly where the risk rating from environment and social safeguard perspective is high. 2.2.8 SWOT Analysis (RHD) 11 A SWOT analysis was conducted on PIU RHD, the implementing agency for the project. It shows the Strengths, Weaknesses, Opportunities and Threats as follows: Strengths: Weaknesses: • RHD has substantial • RHD has not been engaged experience of working with with World Bank funded Development Partner funded project for almost ten projects, like ADB, JICA etc. years. • They have qualified and • They are less familiar the experienced pool of engineers Bank’s new Procurement and professionals for the Regulations. project. • There is potential lack of • They have many officials with due diligence during the training on public bid/ proposal evaluation procurement and e-GP. process. • RHD has the experience of • Although complaint managing high value and handling mechanism is high Opportunities: complexity contracts. clearly elaborated in the • Built-in Engineering section Threats: country procurement • RHD may leverage from the system, the engaged in procurement • Unavailability suitable needs of system and experience gained through improvement in terms functions will be supportive of qualified staff in the projectof implementation of smooth implementation the of practice. of (Possibility transfer, project. Bank previous the financed retirement etc.). project. • Force majeure situations like • RHD officials will have the Covid variations, bad opportunity to be familiar with weather, excessive rainfall the new Bank’s Procurement may affect the contract. Regulations and the project will benefit from a number of flexible features. • They will work with the international consultants (e.g. PMC, supervision consultant) which will strengthen their capacity in project management and supervision in future. 12 2.3 MARKET RESEARCH AND ANALYSIS 2.3.1 MARKET RESEARCH RHD, under the Ministry of Roads Transport and Bridges (MRTB) is the key agency entrusted for conducting all of the procurement of this Project. RHD’s procurement will have most of the weight on works (92.3%) and some on service (7.3%) procurement within itself. A detailed analysis was done for key focus areas for procurement under the project and its market as part of the preparation of this PPSD. As per procurement plan, about 92.3% of IDA financing would be utilized for civil works. Other procurement categories include consulting services (7.7%). RHD shall also engage consultants (firms and individuals) for associated services, including but not limited to, project implementation consultancy, update design & safeguard document consultancy, INGO etc. A market survey of consultants and contractors carried out as part of the PPSD and it indicates that availability of contractors and consultants in the country, as well as in the region who will have interests to participate in the bidding opportunities envisaged under the project, alongside international bidders and consultants. World Bank has recently performed a detail risk assessment of RHD, which carried out a thorough study of seven big similar contracts completed under three major DP funded projects (SASEC under ADB, Cross-border under JICA, and BRT under ADB). The following table provides the list of contractors engaged under those packages: Table 1: List of Contractors engaged under similar RHD Projects Sl. Name of the Name of Sample Name of Contractors Contrac No. Project Contracts t Value (USD Million) 1. CBRNIP/RHD/A1/01/20 •TEKKEN – AML - YBC 119.98 17-2018 (PW-01) JV (Win) Construction of 4-lane •Mir Akhter - Cross Border Kalna Bridge (Nielson Komaihaltec JV Road Lohse Arch type) on Network AH1 along with Improvement construction of long Project access road and installation of toll collection system with toll booths. 13 Sl. Name of the Name of Sample Name of Contractors Contrac No. Project Contracts t Value (USD Million) 2. CBRNIP/RHD/C/01/201 • Spectra – CR24 JV 93.89 8 (PW-04) (Win) Reconstruction of 4 • Mir Akhter – Hugo JV nos. small-to-medium • Top International size bridges along Engineering with the approach Corporation (NR) roads on AH41 (Chittagong-Cox’s Bazar Road). 3. CBRNIP/RHD/A2/01/20 • Monico JV (Win) 41.22 17-2018 (PW-02) • Spectra JV Reconstruction of 4 • Concord nos. small-to-medium • Mir Akhter JV size Bridges along • Orient JV (NR) with the approach roads and installation of axle load control station at Benapole on AH1 (Benapole- Narail- Bhanga Road). 4. SASEC-RCP/ICB/W-01 • Kyeryong – Spectra JV 89.42 (WP-01) (Win) Improvement of Road • HALLA – PBL JV from Vogra bazaar • SAMWHAN – Mir intersection to Akhter JV Kaliakoir bypass • MONICO – WMCG JV intersection (18.9 km) (NR) South Asia from 2 lane to four • TCCL – CREEC JV (NR) Sub regional lane including • AML – HCM JV (NR) Economic structures. Cooperation • Max Automobile Prod (SASEC) Ltd. (NR) 5. Road SASEC-RCP/ICB/W-01 • AML – HCM JV (Win) 82.02 Connectivity (WP-02) • HALLA – PBL JV Project Improvement of Road • Kyeryong – Spectra JV from Kaliakoir bypass • SAMWHAN – Mir to Dullamari road Akhter JV (18.00 km) from 2 • MONICO – WMCG JV lane to four lane (NR) including structures. • TCCL – CREEC JV (NR) Provision of support • ACL – TANTIA JV (NR) to Project for third 14 Sl. Name of the Name of Sample Name of Contractors Contrac No. Project Contracts t Value (USD Million) party maintenance • Max Automobile Prod quality check. Ltd. (NR) 6. SASEC-RCP/ICB/W-01 • SAMWHAN – Mir 84.77 (WP-03) Akhter JV (Win Improvement of Road • AML – HCM JV from Dullamari road • Long Jian Road & to Tangail (22.40 km) Bridge Co. Ltd. from 2 lane to four • HALLA – PBL JV lane including • Kyeryong – Spectra JV structures. • MONICO – WMCG JV (NR) • TCCL – CREEC JV (NR) • ACL – TANTIA JV (NR) • Max Automobile Prod Ltd. (NR) 7. Greater PACKAGE # PW-01 • China Gezhouba 106.92 Dhaka Construction of at- Group Company Sustainable grade section of BRT Limited (Win) Urban corridor (incl. bus • China Harbour Engg. Transport way, stations, Co. Ltd. Project pavement, flyovers • Samwhan – Mir and traffic Akhter JV improvements). • Kyeryong – Monico JV • Spectra-CCECC- CR16B JV • Simplex Infrastructures Ltd. • Hansin – AML JV • Sinohydro Corporation Ltd. • Ranken Railway (NR) • China Railway (CREC) (NR) Representativeness of the Sample Contracts and Availability of Contractors in the Market: A good number of contractors with technical and financial capability of similar work construction has been identified under 15 the aforesaid seven sample contracts. The nature and complexity of the construction works under the two major packages of the project are very similar to those identified in the sample contracts from technical perspective. From financial perspective, the average contract value of these seven contracts were USD 88.32 million, while the average estimated value of the planned three major work packages under this PPSD for RHD are USD 100 million. Therefore, it can be expected that a good number of contractors with sufficient experience with financial capability will be interested to participate in the bidding process of the three aforesaid packages. Since works procurement stands for 92.3% of total procurement of the project, this analysis is expected to have significance implication in terms of risk mitigation. Trends for Joint Venture: As per above table it may be noted that, almost all contracts had been won by the Joint Venture of domestic and foreign bidders. This indicates that the domestic bidders may alone have some shortfalls in the fulfilment of the procurement requirements. So, the option of Joint Venture must be kept open in the works procurement packages of the project. 2.3.2 e-GP AND OPEN TENDERING METHOD The findings of the Operational Risk Assessment (ORA) indicates that, since the inception of e-GP system, a trend is being observed in RHD procurement to use OTM method effectively. The following graph shows that, in 2018-19, RHD has used OTM method for practically all of its procurement (99.99%). Considering the natural tendency in RHD to use open competition, the risk rating for the market approach is low. 16 Method-wise Distribution of Procurement in FY 2018-19 No. of Bidding Procedures 25,000 20,650 20,000 15,000 10,000 5,000 1 14 0 LTM OTM RFQ Procurement Method Figure: Open competition is the preferred method of procurement at RHD 2.3.3 THE DOMESTIC MARKET IN WHICH RHD OPERATES All Bidders of RHD have their unique ID in the e-GP system database. The sample size for the ORA study as mentioned above were taken as the entire database of the available Bidders, which comprises of approximately 2,312 number of bidders participating in procurement under revenue budget. Sample Size: 2,312 No. of Bidders Spend Analysis by No. of Contracts Nos Percent Total No. of Contracts 15,548 100% Share of Top-20 winning bidders (won by No. of 2,354 15.14% contracts) Share of Top-20 winning bidders (won by Value of 1,368 8.80% contracts) Share of Top-7 winning bidders (won both by No. & 1,095 7.04% Value) Spend Analysis by Value of Contracts Crore Percent BDT Total Value of Contracts 22,065 100% Share of Top-20 (by No.) 3,091 14.01% Share of Top-20 (by Value) 6,522 29.56% Share of Top-7 (by No. & Value) 2,757 12.49% 17 Figure: Spend Analysis OTM. Source e-GP In a perfectly competitive market, a good proportion of the bidders are expected to win a good proportion of contracts. On the other hand, in a monopoly or cartel market, top ranked bidders (say, Top-10 or Top-20) frequently win contracts. It is safe to identify in which market conditions RHD operate locally. 2.3.4 SPEND ANALYSIS FOR RHD A spend analysis was made during a previous study of RHD to identify trends of the prevailing domestic market. The study finding is that (see the Table given above and charts given below), the top 20 bidders (who won the highest aggregated Number of contracts) among all these 2,312 represent 15.14% of the total number of contracts and 8.80% of the total value of contracts. This appears to be a satisfactory distribution of the business opportunities. On the other hand, the top 20 bidders (who won the highest aggregated Value of contracts) represent 14.01% of the total number of contracts and 29.56% of the total value of contracts, which again appears be a normal distribution. The study further reveals that there are 7 contractors who are common within these two pools of top 20 bidders (who won both the highest Number of contracts and the highest Value of contracts). These top 7 bidders represent 7.04% of the total number of contracts and 12.49% of the total value of contracts. This observation is an indication that the domestic market in which RHD is operating does not appear to be a monopoly of by a few top-ranked contractors. However, compared to the sample size of 2312 bidders; an iterative spend analysis with top 50, top 100 or more bidders with the help of sophisticated ICT tools would give more realistic picture of the market. Considering the above-mentioned observations and findings, the risk rating for the market under this category can be considered as Moderate. 18 Spend Analysis by No. of Contracts 18,000 100% 16,000 14,000 Numbers 12,000 10,000 8,000 6,000 4,000 15.14% 8.80% 7.04% 2,000 0 Total No. of Share of Top- Share of Top-Share of Top- Contracts 20 (by No.) 20 (by 7 (by No. Value) & Value) Spend Analysis by Value of Contracts 100% 25,000 20,000 15,000 29.56% 10,000 14.01% 12.49% 5,000 Crore BDT 0 ts of 0 0 ) -2 e) 2 al -7 ac e u p- e) o. p tr alu V p N o al o u & To y fT V T on V y of o. of (b o C al e (b re t N e To ar y ar a h h (b Sh S S 19 2.3.5 JUSTIFICATION OF THE PACKAGE FORMULATION (RHD) Works procurement under this project are of pivotal importance, both technically and financially. The Works contracts have been planned to be executed in one package with three lots based on the length of road and value of the package. The first two lots involve 36.9 km of road work with estimated cost around USD 107 Million and USD 92.0 Million respectively, while the third lot involves 6 km road work with a major bridge construction with an estimated cost of around USD 65.0 million. PIU RHD will be administering the bidding process and contract management for all the three lots. The rationale for including multiple lots in a single Package is explained below: Firstly, DPP’s Procurement Plan for SCSHIP has been approved as three separate lots under only one Package for implementation of the Works Package. This inconsistency between the DPP and PPSD should be corrected. Moreover, bidding multiple lots under one Package can streamline the process by reducing administrative overhead and increasing the efficiency of the Client in bid evaluation and approval processes by avoiding double work. The three lots are on the same stretch and tendering as one package with multiple lots, will enables the bidders to have a full picture of the overall road stretch to help them decide whether to bid for one lot or multiple lots and also enables the bidders to understand potential construction work coordination challenges and take this into consideration in their Methodology and Work Plan. Thus, it can increase competition among bidders, as they may be more motivated to offer competitive pricing to win several Contracts. In other aspects, the WB’s SPD provision about the qualifications required to win multiple Contracts (i.e., the experience requirement for different Contracts) clearly indicates the bidders’ qualification in bidding on a lot basis as part of a Package. The evaluators can easily analyze, and hence, winning several lots under a Package is more challenging to the bidders than winning multiple Packages invited at once and Contract execution during the same time. Thus, the likelihood of each lot been awarded to different bidders is high. 20 2.3.6 SUPPLY POSITION ANALYSIS (RHD) High Strategic Security Strategic Critical • Risk or Vulnerability Tactical Acquisition Tactical Advantage • Computer and • SP-1: Project Consumables Implementation Consulting • Furniture supply Firm • Printing and Binding of • Works Package with 3 lots Docs. • Office and Telephone equip. • Stamps and Seals • Stationaries etc. Low Low High Cost 3. PROCUREMENT RISK ANALYSIS (RHD) The major risks identified from the analysis are evaluated and summarized below to assess and minimize the likelihood of the risk and minimizing its impact on the project. Sl. Risk Risk Ranking Over Description of No. Description Likeli Impa all proposed mitigation hood ct Ratin through Ratin Ratin g procurement g (A) g (B) (A*B) process 01 Delay in H H H •Agreeing on detailed procurement timeline for all process. procurement 21 Sl. Risk Risk Ranking Over Description of No. Description Likeli Impa all proposed mitigation hood ct Ratin through Ratin Ratin g procurement g (A) g (B) (A*B) process activities and strictly follow the timeline. •Ensuring regular Monitoring of procurement activities through STEP. 02 Lack of M H M •Providing adequate experience of Training on RHD officials in Procurement Bank’s Regulations and STEP Procurement to relevant officials of Regulations and RHD STEP. 03 Poor quality bid L H M •Inclusion of evaluation due international/ national to lack of procurement and experience. technical consultant in the BEC/ PEC. •Local procurement consultant will be a mandatory member of all BEC/ PEC •Carrying out evaluation preferably in one go with minimal interruption. 04 Leakage of L H M •Carrying out information evaluation preferably related to in one go evaluation 05 Disclosure of L H L •Keeping the financial information proposal in a safe related to custody other than financial PIU. proposal 06 Inadequate M H M •Developing and supervision and following contract quality control of management plan; construction •Providing training on work and poor contract 22 Sl. Risk Risk Ranking Over Description of No. Description Likeli Impa all proposed mitigation hood ct Ratin through Ratin Ratin g procurement g (A) g (B) (A*B) process contract management; management •Engage supervision team from PIU for each package separately headed by an Executive Engineer; •Engage design review and supervision consultant; •Making on time payment. 07 Lack of H H H • Assign focal person coordination from PIU for among the coordination among Stakeholders. the agencies involved in project implementation such as RHD, utility agencies, distric commissioner’s office, associated Ministries, Planning Commission, ERD, Ministry of Finance etc.; •An Inter-ministerial Project Steering Committee will be formed; 08 Sustainability M H M •Bidding documents will address environmental, health, safety, social aspects. 09 Material price H M M •Contracts with price fluctuation adjustment provision 10 Lack of H H H •Assign focal persons coordination from PIU and each among different implementing agencies for 23 Sl. Risk Risk Ranking Over Description of No. Description Likeli Impa all proposed mitigation hood ct Ratin through Ratin Ratin g procurement g (A) g (B) (A*B) process implementing coordinating within agencies the project and enhancing internal communication •Assign clear and unambiguous roles to each focal person Note: VL = Very Low; L = Low; M = Medium, H = High; VH = Very High Land Acquisition and Social Safeguard issues: Taking possession of the required land from the corresponding district administration and complying all associated environment & social safeguard issues may become a significant challenge. For the construction and improvement work, well organized traffic control management will be necessary to minimize the social hazard and impact on the residents. The agency will take necessary steps so that the selected Contractor is aware of the importance of social mobilization. Stakeholder Management: For smooth project implementation, communication may be required with a number of public utility service providing organizations, who already have their service infrastructure built within the site. These public organizations could be the local administration, power authority, gas authority, water authority etc. They would be expecting minimum interference of the project activities with their existing facilities. To minimize the conflict between the contractors/ consultants and these public authorities, the responsibilities of contractors/ consultants under each contract have to be clearly indicated in the Employer’s Requirement and it will be supervised by the Employer and its representatives. 4. Procurement STAKEHOLDER ANALYSIS (RHD) A group of main stakeholders have been identified who have an interest or impact on the Project and whether their interest is one of responsibility, accountability, to be consulted or informed. The identified stakeholders will need to be engaged to understand what objectives they have from the procurement during the project implementation. The table below shows identified stakeholders with their interest and management plan. 24 Sl. Name of Interest Stakeholder Stakeholder No Stakeholders (Responsib objectives from the Management . le/ procurement Approach Accountabl e/ Consulted/ Informed. 01 Ministry of Consulted Sponsoring Ministry • Coordinating Road and taking Transport & approvals Bridges (MRTB) 02 Roads and Responsible Implementing Agency • Coordinating Highways Accountable and taking Department approvals (RHD) 03 Department of Informed They are responsible • Keeping Environment for maintaining informed and (DoE) overall environment. taking consultation when necessary; • Preparing necessary EIA report and taking timely approval. 04 Bangladesh Informed They are responsible • In case of Telephone for over ground and damage or Company underground shifting of Limited (BTCL) telephone cables. cables, compensation is to be paid to them. 05 Bangladesh Informed They are responsible • Keeping Railway (BR) for country-wide informed and installed railway taking system permission for undercrossing . 06 The World Consult Development Partner • Taking time Bank to time advice, concurrence, and approval. 25 Sl. Name of Interest Stakeholder Stakeholder No Stakeholders (Responsib objectives from the Management . le/ procurement Approach Accountabl e/ Consulted/ Informed. 07 Vendors/ Informed They have interests • Manage as Consultants/ to take participation appropriate NGOs in the bidding process under this project 08 Civil society Informed They have interests • Consultation to play roles as a and watchdog of the awareness. society 5. PROCUREMENT OBJECTIVES The procurement objectives of the project are to ensure that goods, works and services are delivered/ completed in accordance with right specification/TOR, on time as per the procurement plan at competitive price at the right place at the right quantity. These will, if achieved, support the delivery of the project development objectives and achieve value for money. Prioritized procurement objectives are as follows: 1. Ensuring procurement efficiency and value for money for safe movement of vehicles over the corridor; 2. Works are completed in accordance with right specification, on time, at competitive price at the right place; 3. Goods and services are delivered as per specification/ TOR, on time, at competitive price with right quantity; 4. Awarding contracts to qualified, experienced, capable bidders to ensure timely completion; 5. Utilization of new features of the Bank’s Procurement Framework; 6. Procurement Approach Options and Recommendation (RHD) Roads and Highways Department (RHD) will be responsible for implementing the overall project. All the procurement under the project will be carried out by the PIU. The APD, DPD, Project Managers and the Procurement/Contract Specialist of the PIU will assist the PD in the procurement. The responsibility 26 of the PIU in terms of procurement will include preparation of procurement documents such as Terms of Reference (ToR), technical specifications, BoQs, bidding documents, contract management to ensure quality, timeliness, task completion. They will also work as the evaluation committee members for relevant activities. Based on the project requirements, technical solutions and market analysis, procurement strategy has been developed to decide packages of optimum size and number. The major and complex procurement under the project will comprise three lots under 01 civil works package of project. The estimated cost for this civil works package represents 92.3% of the total procurement cost of the project implemented under RHD. Besides these, four consultancy service packages are also being considered as strategically important. These are – (i) SP-1: Consulting Service for Project Implementation Activities, (ii) SP- 2: Consulting Services (iNGO) for implementing 'Resettlement Plan'. (iii) SP-3: Consulting Services for Internal Audit of the Project by a CA firm. and (iv) SP- 4: Consulting Services for updating Designs and Safeguard Documents. Packages for goods, works and services are prepared as per the project requirement using both international and national approach to markets. The works package will be carried out using RFB (open) method with international market approach. Consulting firms will be hired following open competitive selection methods and market approaches such as QCBS (International/ National), QBS, LCS, FBS and CQS. 27 6.1 PROCUREMENT STRATEGY FOR WORKS CONTRACTS (RHD) Package No. WP-1 Improvement of Sylhet-Charkhai-Sheola Highway into 4-Lane Highway Lot-1: Improvement of Sylhet-Charkhai-Sheola Highway into 4-Lane Highway with Service Lanes on Both Sides from Sylhet (Kadamtali) to Golapganj (Ch. 00+000 to 18+900 km) (Length: 18.90 km) Phase-I: Construction Phase Phase-II: Performance Based Maintenance Phase Lot-2: Improvement of Sylhet-Charkhai-Sheola Highway into 4-Lane Highway from Golapganj to Sheola Bridge (Ch. 18+900 to 36+900 km) (Length: 18.00 km) Phase-I: Construction Phase Phase-II: Performance Based Maintenance Phase Lot-3: Improvement of Sylhet-Charkhai-Sheola Highway into 4-Lane Highway from Sheola Bridge to Sheola Landport (Ch. 36+900 to 42+985 km) (Length: 6.085 km) Phase-I: Construction Phase Phase-II: Performance Based Maintenance Phase Note: For Construction phase FIDIC Red Book and Performance Based Maintenance Phase, The RHD Contract template will be included in the Bidding Document. RFB (Works) Contract: The estimated cost of these three lots under works package represents 92.3% of the total procurement cost of the project. Request for Bids (without Pre-qualification) method with application of Rated Criteria has been considered as the most appropriate for this strategically important package. RHD has engaged consultant in place for updating the safeguard documents. This method would bring a number of potential cost and performance advantages for RHD. Procurement under this method would be conducted in a single-stage (Two-Envelope) process. Qualifying criteria, i.e. minimum requirements to be evaluated on a pass/fail basis, will be used with RFB. Contracts will be awarded based on the optimal balance of ‘quality’ and ‘cost’, which is not necessarily the lowest price. This represents the best Value for Money. Selection Method: Request for Bids (RFB) – Work (without Pre-qualification) method with application of Rated Criteria will be used with this procurement. 28 Pre-qualification PQ is a process used to shortlist Applicants to ensure that only those with appropriate and adequate capacity, capability and resources are invited to submit Bids/Proposals. PQ is appropriate for large or complex contracts, or in other circumstances, (such as the need for custom-designed equipment, Plant, specialized services, some complex information and technology, procurement under turnkey, design and build, or management contracting) in which the high costs of preparing detailed Bids/Proposals could discourage competition. However, despite that this is a high value contract it is neither complex nor involves large volume of bid documents. In addition, given the size of the contract overwhelming number of bids that would result lengthy evaluation process is not expected. Hence, use of Pre-Qualification for this tender can only add unnecessary layer affecting the overall project implementation timeline and thus is not recommended. Market Approach: Open – International. The market analysis carried out with the seven sample contracts under a separate operational risk assessment of RHD shows that there are sufficient number of suitable bidders in the international market. Open market approach will ensure best value for money. Market Sounding: Though RHD has a moderate number of bidders who bid for its procurement, still the organization is likely to attract more, or another type of bidders and further exploration should be done. Moreover, the work contracts are of strategic nature and of high value; hence necessitate enough market search. RHD will undertake some sort of market engagement activities, preferably through a market sounding/ bidder’s questionnaire exercise prior to go for finalizing the bidding document. Contract Duration: Each of the civil works contract duration will be 04-years. 03-years construction period followed by 01-year Defects Notification Period. Standard Procurement Documents: Bank’s standard procurement documents for RFB - Works with Rated Criteria will be used for the bidding process. The standard document is available in the Bank’s website. Specifications: Conformance/ Performance Sustainability Requirements: Yes Contract Type: Admeasurement contract Pricing and Costing Mechanism: Schedule of rates/ admeasurement Supplier Relationship: Collaborative Evaluation Method: Most advantageous bid. The most advantageous bid is the bid of the Bidder that meets the qualification criteria and whose bid has been determined to be substantially responsive to the bidding document. The 29 rated criteria shall be applied to evaluate the technical bid proposal. It is the bid with the highest score combining the technical and financial score. The weightage of Technical and Financial score shall be determined during preparation of bidding document. Price Adjustments: Yes Domestic Preference: No Contract Management Approach: Contract management for all procurement packages will be monitored by the Employer. To assist the Employer, RHD will hire a consultant who will be responsible for monitoring and supervising all contractors’ activities and works. The Consultant will include necessary experts and sufficient time input for review of design work, supervise the construction and support the Employer for project implementation. For critical contracts, there will be item wise contract management plan. The progress of the work will be monitored based on the physical work completed and the disbursement of the contract cost. Use of e-GP: No. Government ICB standard document for e-GP has been developed only for Goods procurement so far and following its success, ICB- Works document for e-GP will be developed. Moreover, the World Bank follows FIDIC contract in ICB procurement and the readiness of Bank’s SPD in the e- GP system is yet to be tested. Rated Criteria/ Competitive Dialogue: Rated Criteria has been provisioned for this package according to the World Bank’s Procurement Regulations for IPF Borrowers, July 2016 and updated in September 2023. Qualification - Initial Selection: The Standard Procurement Document (SPD) for RFB (without Pre-qualification). As RFP process is not adopted, the Initial Selection is not applicable. BAFO: No. As RFP process is not adopted, BAFO is not applicable Negotiation: As RFP process is not adopted Negotiation is not applicable. Value Engineering (VE): The detail design will be finalized with appropriate methodology/materials by consulting firm. The scope of alternative proposal will not be sought from bidders. VE at pre or post contract stage will not be applicable. Key Performance Indicators (KPIs) Measures: Some of the KPIs may include as follows: • On time delivery of contractually obligated deliverables as per mutually agreed plans 30 • Supporting/ working documents uploaded (Templates, weekly status reports, minutes of meetings, training manual, project progress etc.) • Number of deliveries that have met acceptance criteria (e.g. Number of defects, functionality of application, User Interface) • Number of dedicated contractor account management visits • Number of improvement and innovation recommendations that are accepted • Disputes resolved amicably as per dispute resolution framework • On time submission of invoices with supporting documents as agreed • Total number of CRs raised/ Contract Amendments, value & scope of each CR / Contract Amendment 6.2 PROCUREMENT STRATEGY FOR MAJOR CONSULTING SERVICES PACKAGES Major Service packages of the project are as follows: SP-1: Consulting Service for Project Implementation Activities of Sylhet- Charkhai-Sheola Highway Improvement Project. [Civil work Supervision Consultant] SP-2: Consulting Services (iNGO) for implementing 'Resettlement Plan'. SP-3: Consulting Services for Internal Audit of the Project by a CA firm. SP-4: Consulting Services for updating Designs and Safeguard Documents. SP-5, SP-6, SP-7, SP-8, SP-9, SP-10: Individual Consultant Services for Procurement/Contract Specialist, Environmental Specialist, Land Acquisition and Resettlement Specialist, Social Development and Stakeholder Engagement Expert, Gender and SEA/SH Expert, Financial Management Expert. Pricing and costing mechanism: Time-based (SP-1, SP-2, SP-3, SP-5 to Sp-10), Lump sum (SP-4) Supplier relationship: Collaborative Selection method: Individual Consultant Selection (SP-5 to SP-10), Quality and Cost Based Selection (QCBS) [SP-1, SP-2, SP-3], Consultant’s Qualification Based Selection (CQS) [SP-4] Market approach: Open – International (SP-1), Open – National (SP-2, SP-3, SP-4, SP-5 to SP-10) Number of stages/ envelops: Not applicable 31 Negotiation: Yes Short-listing: Yes Evaluation selection method: ICS, QCBS, CQS Evaluation of costs: combined evaluation (QCBS), highest ranked (ICS, CQS). 6.3 PROCUREMENT STRATEGY FOR MAJOR GOODS PACKAGES There are no major goods procurement package under the project. 6.5 PROCUREMENT STRATEGY IN GENERAL 6.5.1General All procurement of Works and Service packages under the Project will be carried out in accordance with the World Bank Procurement Regulations for IPF Borrowers, Fifth Edition, September 2023 (“Procurement Regulations”); Financing Agreement; provision of this PPSD and procurement plan that may be updated from time to time in agreement with the World Bank. There are no major Goods procurement under the project, however the minor Goods procurement (national) for the project management set up from GOB financing shall follow Public Procurement Rules 2008 (PPR 2008) and provision of this PPSD. 6.5.2National Procurement Arrangements: In accordance with paragraph 5.3 of the Procurement Regulations, when approaching the national market (as specified in the Procurement Plan tables in STEP), the country’s own procurement procedures may be used. When the Borrower uses its own national open competitive procurement arrangements as set forth in the Public Procurement Act 2006 and the Public Procurement Rules 2008, such arrangements shall be subject to paragraph 5.4 of the Procurement Regulations and the following conditions: 1) Lottery in award of contracts shall not be allowed; 2) Bidders’ qualification[s]/experience requirement[s] shall be mandatory; 3) Bids shall not be rejected based on percentage above or below the estimated cost; 4) Model Bidding Documents agreed with the Bank shall be used for all national open competitive procurement; 5) The eligibility of bidders shall be as defined under Section III of the Procurement Regulations. Accordingly, no bidder or potential bidder 32 shall be declared ineligible for contracts financed by the Bank for reasons other than those provided in Section III of the Procurement Regulations; 6) The request for bids/request for proposals document shall require that Bidders/ Proposers submitting Bids/Proposals present a signed acceptance (in the form attached) at the time of bidding, to be incorporated in any resulting contracts, confirming application of, and compliance with, the Bank’s Anti-Corruption Guidelines, including without limitation the Bank’s right to sanction and the Bank’s inspection and audit rights. 7) Procurement Documents include provisions, as agreed with the Bank, intended to adequately mitigate against environmental, social (including sexual exploitation and abuse and gender-based violence), health and safety (“ESHS”) risks and impacts. When other national procurement arrangements (other than national open competitive procurement) are applied by the Borrower, such arrangements shall be subject to paragraph 5.5 of the Procurement Regulations. 6.5.3 Procurement Process Approval Procedures: Based on the value of different contract packages, the contract approving authority as per Delegation of Financial Powers issued by the Government of Bangladesh will be Project Director (PD), Head of Procuring Entity (HOPE), Ministry and the Cabinet Committee on Government Purchase (CCGP). 7. SUMMARY OF PPSD TO SUPPORT THE PREPARATION OF THE PAD BY THE BANK 7.1 Procurement under the project will be carried out in accordance with the World Bank Procurement Regulations for IPF Borrowers, Fourth Edition, November 2020 (“Procurement Regulations”) and the provisions stipulated in the Project Procurement Strategy for Development (PPSD) and the procurement plan that may be updated from time to time. The project will be subject to the World Bank’s Anticorruption Guidelines, dated October 15, 2006, revised in January 2011, and as of July 1, 2016. The project will use the Systematic Tracking of Exchanges in Procurement (STEP) to plan, record and track procurement transactions. 7.2 The following agencies will be responsible for implementing the overall project: Roads and Highways Department (RHD). RHD has developed a Project Procurement Strategy for Development (PPSD) along with the initial procurement plan. The PPSD will spell out the detailed procurement 33 arrangements for the project including identification of procurement related risks and detailed risk mitigation measures. 7.3 Experience of implementing agencies with the Bank-financed project: RHD was part of the Bank-financed Public Procurement Reform Project and recently was assessed for the Bank-financed the Western Economic Corridor and Regional Enhancement (WeCARE) project and is the implementing agency for WeCARE project. Its procurement capacity is relatively strong in the Bangladesh context and increased use of e-procurement has improved governance. 7.4 All the procurement under the project will be carried out by the PIU: The APD, DPD, Asst PD and the Project Managers will assist the PD in the procurement activities of the project. The responsibility of the PIU in terms of procurement will include preparation of procurement documents such as Terms of Reference (ToR), technical specifications, BoQs, bidding documents, contract management to ensure quality, timeliness, task completion. They will also work as the evaluation committee members for relevant activities. The overall responsibility of procurement will lie with the PIU, which will include, but not limited to, (i) uploading and maintaining procurement plan in STEP and updating from time to time with approval from the World Bank, (ii) carrying out the procurement process including finalizing the bidding/ RFP documents, inviting for bids/ proposals/ applications, evaluation of bids/ proposals/ applications, awarding and signing the contract, making payments to the contractor/ supplier/ consultant after certification by the respective APDs, (iii) uploading all the procurement documents in STEP, (iv) keeping record of all the procurement documents to make it available during the review by the Bank. 7.5 RHD has extensive experience implementing transport projects and have adequate capacity to implement high value contracts. The agency has been involved in the government’s public procurement reform program to roll-out e-GP in 2013 and are well conversant with GoB's Procurement legislation. However, RHD is less familiar with the Bank’s Procurement Regulations as its previous engagement with the Bank dates to 2006. The Bank has identified necessary measures to enhance procurement capacity, including the engagement of fiduciary consultants by RHD to mitigate the risk of delays in procurement evaluation, contract awards and payments to contractors. The consultant would also assist in vetting variations and avoiding cost overruns. 34 7.6 The project has included large works and services package. The major and complex procurement under the project will comprise with three lots under one civil works package. The estimated cost for this works package represents approximately 92% of the total procurement cost of the project. Besides this, four consultancy service packages are also being considered as strategically important. These are (i) Consulting Service for Project Implementation Activities of Sylhet-Charkhai-Sheola Highway Improvement Project (Int’l). [Civil work Supervision Consultant], (ii) SP-2: Consulting Services (iNGO) for implementing 'Resettlement Plan'. (Natn’l), (iii) SP-3: Consulting Services for Internal Audit of the Project by a CA firm. (Natn’l), and (iv) SP-4: Consulting Services for update Design and Safeguard Documents (Natn’l). 7.7 As per procurement plan, about 92.3% of IDA financing would be utilized for civil works. Other procurement categories include consulting services (7.7%). RHD shall also engage consultants (firms and individuals) for associated services, including but not limited to, project implementation consultancy, update design & safeguard document consultancy, iNGO, internal audit etc. A market survey of consultants and contractors carried out as part of the PPSD indicates availability of contractors and consultants in the country, as well as in the region who will have interests to participate in the bidding opportunities envisaged under the project, alongside international bidders and consultants. 7.8 Procurement risk at this stage is deemed to be ‘Medium’ to ‘High’. Factors that will contribute to the risk include possible delay in land acquisition and utility lines shifting, delay in procurement due to lack of technical preparation (ToRs, technical specifications, cost estimates, etc.) before start of the procurement process, reduced participation and competition of firms due to the prevailing COVID-19 situation, slow decision making and approval processes within the Government. However, residual procurement risk after mitigation measures be taken will deemed to be ‘Medium’. 7.9 Procurement risk mitigation measures include: (i) preparing and implementing the Project Procurement Strategy for Development (PPSD) with fit-for-purpose procurement and contract management approaches, (ii) Bank’s review requirements based on the risks (iii) pursuant to the common goal of the Government and the Bank for ensuring timely completion of procurement processes, the established timelines for completion of key milestones in the procurement process as set forth in the issued Minutes of the GOB-WB Country Portfolio Review Meeting dated March 23-24, 2021 shall be applicable to all procurement of Goods, Works, Consultant and non-consultant services under the Project (refer to Action Nos. 1-9 in the Table “Key Actions for reducing 35 delays in bid evaluation and contract signing” under sub-section 2a- Procurement of the issued Minutes, copy of which has been shared with the PIU and implementing agencies), (iv) use of the government’s electronic procurement (e-GP) system where applicable, (v) assigning qualified PIU staff for handling procurement and if necessary supplemented with procurement consultants, and (vi) providing procurement training to relevant project officials. 7.10 Procurement Plan: The Procurement Plan will be maintained in STEP and its revisions will need the World Bank’s review and approval. A General Procurement Notice would be published on the World Bank’s website and in the United Nations Development Business online. 8. INITIAL PROCUREMENT PLAN FOR THE MAJOR PROCUREMENT ACTIVITIES: (RHD) Package No. WP-1 Improvement of Sylhet-Charkhai-Sheola Highway into 4-Lane Highway Lot-1: Improvement of Sylhet-Charkhai-Sheola Highway into 4-Lane Highway with Service Lanes on Both Sides from Sylhet (Kadamtali) to Golapganj (Ch. 00+000 to 18+900 km) (Length: 18.90 km) Phase-I: Construction Phase Phase-II: Performance Based Maintenance Phase Lot-2: Improvement of Sylhet-Charkhai-Sheola Highway into 4-Lane Highway from Golapganj to Sheola Bridge (Ch. 18+900 to 36+900 km) (Length: 18.00 km) Phase-I: Construction Phase Phase-II: Performance Based Maintenance Phase Lot-3: Improvement of Sylhet-Charkhai-Sheola Highway into 4-Lane Highway from Sheola Bridge to Sheola Landport (Ch. 36+900 to 42+985 km) (Length: 6.085 km) Phase-I: Construction Phase Phase-II: Performance Based Maintenance Phase 8.1 WORKS PACKAGE: 36 Contr Description of Procurement Uni Qty. Estimate Proc. Rev Re act Package. t d Cost Meth iew m Pack (USD od & Typ ar age Million) Type e ks No.* 1 2 3 4 5 6 8 9 Improvement of Sylhet-Charkhai- Sheola Highway into 4-Lane Highway from Sylhet (Kadamtali) - Golapganj - Sheola Bridge – Sheola Landport (Ch. 00+000 to 42+985 42.9 RFB Prio Km 264.20 85 (ICB) r km) (Length: 42.985 km), packaged in the following three lots. Phase-I: Construction Phase Phase-II: Performance Based Maintenance to be financed by GOB. Lot-1: Improvement of Sylhet- Charkhai-Sheola Highway into 4- Lane Highway with Service Lanes on RFB [112.86 (Open Both Sides from Sylhet (Kadamtali) for - Prio to Golapganj (Ch. 00+000 to Km 18.9 Phase-I Intern r 18+900 km) (Length: 18.90 km) only (WB WP-1 ationa finance)] Phase-I: Construction Phase l) Phase-II: Performance Based Maintenance to be financed by GOB. Lot-2: Improvement of Sylhet- Charkhai-Sheola Highway into 4- RFB Lane Highway from Golapganj to (Open [85.0 for Sheola Bridge (Ch. 18+900 to - Prio Km 18.0 Phase-I 36+900 km) (Length: 18.00 km) Intern r only (WB ationa Phase-I: Construction Phase finance)] l) Phase-II: Performance Based Maintenance to be financed by GOB. Lot-3: Improvement of Sylhet- RFB Charkhai-Sheola Highway into 4- [66.33 (Open Lane Highway from Sheola Bridge to 6.08 for - Prio Km Sheola Landport (Ch. 36+900 to 5 Phase-I Intern r only (WB ationa 42+985 km) (Length: 6.085 km) finance)] l) Phase-I: Construction Phase 37 Contr Description of Procurement Uni Qty. Estimate Proc. Rev Re act Package. t d Cost Meth iew m Pack (USD od & Typ ar age Million) Type e ks No.* 1 2 3 4 5 6 8 9 Phase-II: Performance Based Maintenance to be financed by GOB. 8.2 GOODS PACKAGES: Contra Description of Uni Qty Estimat Procedu Risk Revie Rema ct Procurement t . ed Cost re / w rks Packa Package. (USD Method Type ge Million) No.* 1 2 3 4 5 6 7 8 9 - - - - - - - - - 8.3 CONSULTING SERVICE PACKAGES: Contra Description of Unit Qty Estimate Proc. Risk Rev Remarks ct Procurement . d Cost Metho iew Packa Package (USD d& Typ ge No. Million) Type e 1 2 3 4 5 6 7 8 9 Consulting Service for Project Implementation Man- 115 Substa Prio Internation SP-1 Activities of Mont 8.08 QCBS 5 ntial r al Sylhet-Charkhai- h Sheola Highway Improvement Project Consulting Services (iNGO) Man- for Mediu SP-2 Mont 182 0.21 QCBS Post National Implementing m h Resettlement Plan SP-3 Consulting Services for Man- Mediu Internal Audit of Mont 50 0.22 QCBS Post National m the Project by a h CA Firm SP-4 Consulting Man- Mediu 24 0.14 CQS Post National Service for Mont m 38 Contra Description of Unit Qty Estimate Proc. Risk Rev Remarks ct Procurement . d Cost Metho iew Packa Package (USD d& Typ ge No. Million) Type e 1 2 3 4 5 6 7 8 9 Updating h Design and Safeguard Documents SP-5 Individual Conusltant Service as Procurement / Contract Man- Substa Prio Specialist for Mont 20 0.125 ICS National ntial r Sylhet - h Charkhai - Sheola Highway Improvement Project SP-6 Individual Conusltant Service as Environmental Man- Specialist for Mediu Mont 30 0.133 ICS Post National Sylhet - m h Charkhai - Sheola Highway Improvement Project SP-7 Individual Conusltant Service as Land Acquisition and Resettlement Man- Mediu Specialist for Mont 30 0.133 ICS Post National m Sylhet - h Charkhai - Sheola Highway Improvement Project SP-8 Individual Conusltant Service as Social Development Man- Mediu and Stakeholder Mont 30 0.1336 ICS Post National m Engagement h Expert for Sylhet - Charkhai - Sheola Highway 39 Contra Description of Unit Qty Estimate Proc. Risk Rev Remarks ct Procurement . d Cost Metho iew Packa Package (USD d& Typ ge No. Million) Type e 1 2 3 4 5 6 7 8 9 Improvement Project SP-9 Individual Conusltant Service as Gender and Man- SEA/SH Expert Mediu Mont 24 0.107 ICS Post National for Sylhet - m h Charkhai - Sheola Highway Improvement Project SP-10 Individual Consultant Service as Financial Man- Management Mediu Mont 50 0.2227 ICS Post National Expert for m h Sylhet-Charkhai- Sheola Highway Improvement Project *Note: The estimated cost should include Tax/VAT. 40 PROCUREMENT Bangladesh : Accelerating Transport and Trade Connectivity in Eastern South Asia – Bangladesh Phase 1 Project PLAN General Information Country: Bangladesh Bank’s Approval Date of the Original Procurement Plan: 2023-11-20 Revised Plan Date(s): (comma delineated, leave blank if 2024-12-15 none) Project ID: P176549 GPN Date: 2023-03-14 Project Name: Accelerating Transport and Trade Connectivity in Eastern South Asia – Bangladesh Phase 1 Project Loan / Credit No: IDA / 71660 National Board of Revenue 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 Request for Bids - WD-04 / Construction of Cus Institutional and policy stren Open - Internationa Single Stage - Two E Small Works SPD 34,700,000.0 Pending Imp 2027-02-2 toms Excise & VAT Training A IDA / 71660 gthening for transport and tr Prior Request for Bids 0.00 2025-03-12 2025-03-17 2025-04-28 2025-07-11 2025-08-15 l nvelope (2 envelope proce 0 lementation 8 cademy, Chattogram ade ss) Request for Bids - WD-01 / Construction of Resi Institutional and policy stren Single Stage - One E Works (without pr 11,059,800.0 Pending Imp 2027-02-2 dential Building of Custom H IDA / 71660 gthening for transport and tr Prior Request for Bids Open - National 0.00 2025-02-18 2025-02-23 2025-04-06 2025-05-06 2025-06-10 nvelope equalification) SP 0 lementation 8 ouse Chattogram ade D Request for Bids - WD-02 / Construction of Resi Institutional and policy stren Single Stage - One E Works (without pr Pending Imp 2027-01-3 dential Building of Customs E IDA / 71660 gthening for transport and tr Post Request for Bids Open - National 5,020,000.00 0.00 2025-02-04 2025-02-09 2025-03-23 2025-04-22 2025-05-27 nvelope equalification) SP lementation 1 xcise & VAT Training Academ ade D y, Chattogram Request for Bids - WD-03 / Construction of Cus Institutional and policy stren Open - Internationa Single Stage - Two E Works (without pr 59,633,000.0 Pending Imp 2027-01-3 IDA / 71660 Prior Request for Bids 0.00 2025-02-02 2025-02-07 2025-03-21 2025-06-03 2025-07-08 tom House Chattogram gthening for transport and tr l nvelope equalification) SP 0 lementation 1 ade D 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 Institutional and policy stren Single Stage - One E Pending Impl GD-07 / Furniture for PIU IDA / 71660 Post Request for Bids Open - National 137,000.00 0.00 2023-12-19 2023-12-24 2024-01-07 2024-01-21 2024-03-03 2024-05-02 gthening for transport and tr nvelope ementation ade GD-04 / HVAC for CRMC & PI Institutional and policy stren Single Stage - One E Pending Impl IDA / 71660 Post Request for Bids Open - National 264,200.00 0.00 2023-11-14 2023-11-19 2023-12-10 2023-12-31 2024-02-18 2024-07-17 U- 250 Tons gthening for transport and tr nvelope ementation ade GD-03 / Generator 150 KVA i Institutional and policy stren Single Stage - One E Pending Impl IDA / 71660 Post Request for Bids Open - National 174,260.00 0.00 2026-01-01 2026-01-08 2026-01-22 2026-02-05 2026-03-19 2026-09-15 ncluding servicing and maint gthening for transport and tr nvelope ementation enance ade GD-06 / Office Equipment (Bi Institutional and policy stren ometric system, Central CCT Single Stage - One E Pending Impl IDA / 71660 gthening for transport and tr Post Request for Bids Open - National 68,800.00 0.00 2026-01-01 2026-01-06 2026-01-20 2026-02-03 2026-03-17 2026-07-15 V system, Jammer, PABX Sys nvelope ementation ade tem, Base Station) Institutional and policy stren Single Stage - One E Pending Impl GD-08 / Archway for CRMC IDA / 71660 Post Request for Bids Open - National 27,500.00 0.00 2026-01-01 2026-01-06 2026-01-20 2026-02-03 2026-03-17 2026-06-15 gthening for transport and tr nvelope ementation ade GD-09 / Baggage Scanner fo Institutional and policy stren Single Stage - One E Pending Impl IDA / 71660 Post Request for Bids Open - National 36,670.00 0.00 2026-02-02 2026-02-07 2026-02-21 2026-03-07 2026-04-18 2026-10-15 r CRMC gthening for transport and tr nvelope ementation ade GD-10 / Computer Software Institutional and policy stren Single Stage - One E Pending Impl (API PNR Software and relate IDA / 71660 gthening for transport and tr Post Request for Bids Open - National 229,300.00 0.00 2026-01-01 2026-01-06 2026-01-27 2026-02-17 2026-03-31 2026-09-27 nvelope ementation d hardware components) ade GD-05 / Laboratory equipme Institutional and policy stren Open - Internationa Single Stage - Two E Pending Impl IDA / 71660 Prior Request for Bids 10,821,300.00 0.00 2025-02-02 2025-02-07 2025-03-21 2025-06-03 2025-07-15 2026-01-11 nt (For Custom House Chatto gthening for transport and tr l nvelope ementation gram) ade GD-01 / Procurement of Des ktop (100), Laptop (50), Serv Institutional and policy stren er, Multimedia Projector (5), Single Stage - One E Pending Impl IDA / 71660 gthening for transport and tr Post Request for Bids Open - National 350,200.00 0.00 2024-12-08 2024-12-13 2025-01-24 2025-02-23 2025-04-06 2025-10-03 Heavy Duty Scanner (5), Pho nvelope ementation ade tocopier & Printer (5) (includi ng toner and accessories) for CRMC GD-02 / Procurement of Des ktop (30), Laptop (10), Serve Institutional and policy stren Single Stage - One E Pending Impl r, Multimedia Projector (02), IDA / 71660 gthening for transport and tr Post Request for Bids Open - National 100,160.00 0.00 2024-12-08 2024-12-13 2025-01-24 2025-02-23 2025-04-06 2025-08-04 nvelope ementation Scanner (03), Photocopier, a ade nd Printer (03) (including ton er and 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$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual SD-16 / Hiring for service pr Institutional and policy stren ovider for organizing launchi Single Stage - One E Pending Impl IDA / 71660 gthening for transport and tr Post Request for Bids Open - National 24,000.00 0.00 2023-12-18 2023-12-23 2024-01-08 2024-02-07 2024-03-13 2024-09-09 ng/ dissemination event of C nvelope ementation ade ustoms Modernization Strate gic Action Plan. CONSULTING FIRMS Activity Reference No. / Combined Evaluation Loan / Credit N Market Approac Contract Type Estimated Amo Actual Amount Expression of Interest Short List and Draft R Request for Proposals Opening of Technical Evaluation of Technic Description Component Review Type Method Process Status Terms of Reference Report and Draft Neg Signed Contract Contract Completion o. h unt (US$) (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 SD-03 / Project Management Institutional and policy stren Quality And Cost- Open - Internationa Under Implement IDA / 71660 Prior 2,181,000.00 0.00 2023-11-08 2023-11-25 2023-11-29 2024-02-19 2024-01-12 2024-05-31 2024-02-09 2024-08-21 2024-03-10 2024-04-14 2024-05-19 2027-10-31 and Quality Assurance Servic gthening for transport and tr Based Selection l ation es ade SD-01 / Building Design - Im plementation and Interior De sign Consultancy Services for Quality And Cost- Open - Internationa Under Implement IDA / 71660 Digital Systems forTrade Prior 5,727,000.00 0.00 2023-11-20 2023-12-14 2023-12-11 2024-02-19 2024-01-24 2024-05-30 2024-02-21 2024-08-13 2024-03-22 2024-10-23 2024-04-26 2024-05-31 2026-11-30 Custom House, Chattogram a Based Selection l ation nd Customs, Excise and VAT Training Academy, Chattogra m Page 1 SD-10 / Sustainability of NS Institutional and policy stren W: Consultancy Services to s Consultant Qualifi Pending Impleme IDA / 71660 gthening for transport and tr Post Open - National 165,000.00 0.00 2024-01-01 2024-01-08 2024-02-12 2024-03-13 2024-03-29 2024-09-25 upport NBR in setting up the cation Selection ntation ade NSW Commissionerate/ Direc torate SD-11 / Consultancy Service Institutional and policy stren Consultant Qualifi Under Implement s for Internal Audit (Mid-Term IDA / 71660 gthening for transport and tr Post Open - National 39,400.00 0.00 2025-04-01 2024-10-25 2025-04-15 2025-05-20 2025-06-19 2025-07-31 2026-01-27 cation Selection ation & End Term) ade SD-12 / Consultancy service Institutional and policy stren Consultant Qualifi Pending Impleme IDA / 71660 Post Open - National 7,100.00 0.00 2025-05-01 2025-05-15 2025-06-28 2025-07-28 2025-09-08 2026-01-06 s for ESIA gthening for transport and tr cation Selection ntation ade SD-04 / Tariff Modernization: Consultancy Services for Tari ff Policy Analysis and Formul Quality And Cost- Open - Internationa Under Implement ation of Implementation Plan IDA / 71660 Digital Systems forTrade Post 530,000.00 0.00 2024-10-21 2024-10-25 2024-11-11 2024-12-25 2025-01-22 2025-02-21 2025-03-28 2025-05-02 2026-11-01 Based Selection l ation and Scoping Assessment for ASYCUDA/NSW/ARMS-backed software development for Ta riff Analysis SD-13 / Time Release Study Institutional and policy stren at key Custom Houses and L Quality And Cost- Open - Internationa Pending Impleme IDA / 71660 gthening for transport and tr Post 986,000.00 0.00 2023-12-20 2024-01-10 2024-02-23 2024-04-05 2024-05-05 2024-06-09 2024-07-21 2025-07-21 C Stations (Baseline, Midline Based Selection l ntation ade and End-line Survey) SD-06 / Customs Reform and Modernization: Customs Risk Management (RM), Authorize d Economic Operator (AEO), Institutional and policy stren Quality And Cost- Open - Internationa Under Implement Post Clearance Audit (PCA), P IDA / 71660 gthening for transport and tr Prior 2,410,800.00 0.00 2024-10-24 2024-11-24 2024-11-14 2024-12-28 2025-01-25 2025-02-24 2025-03-31 2025-05-05 2027-03-31 Based Selection l ation re-Arrival Processing (PAP), C ade ustoms Bond Management, C ustoms Excise and VAT Traini ng Academy (CEVTA) and se tting up NSW Comm 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 SD-14 / Procurement Special Institutional and policy stren Individual Consult IDA / 71660 Prior Open - National 295,000.00 0.00 Signed 2023-10-26 2023-11-22 2023-12-14 2024-03-27 2024-01-04 2024-04-04 2024-02-08 2024-04-22 2028-01-11 ist gthening for transport and tr ant Selection ade SD-15 / Financial Manageme Institutional and policy stren Individual Consult IDA / 71660 Post Open - National 295,000.00 0.00 Signed 2023-10-26 2023-11-20 2023-12-18 2024-04-02 2024-01-08 2024-04-04 2024-02-12 2024-05-15 2028-01-15 nt Consultant gthening for transport and tr ant Selection ade SD-17 / Monitoring and Eval Institutional and policy stren Individual Consult Under Implement IDA / 71660 Post Open - National 125,000.00 0.00 2024-10-21 2024-10-24 2024-12-09 2024-12-30 2025-02-03 2027-03-31 uation Specialist gthening for transport and tr ant Selection ation ade Page 2