World Bank Document

82596

Updated Procurement Plan for Second Liaoning Medium Cities Infrastructure Project (LMC-2) Loan No. : 4864-CHA

I. General Public Disclosure Authorized 1. Project information: The Second Liaoning Medium Cities Infrastructure Project (LMC-2) includes 13 components (6 for water supply, 4 for wastewater and 3 for solid waste) in 7 cities (Anshan, Fushun, Gaizhou, Haicheng, Panjing, Yingkou and Xingcheng).

Procurement for the proposed project will be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” dated May 2004, “Guidelines: Selection and Employment of Consultants by World Bank Borrowers” dated May 2004, and the provision stipulated in the legal documents. The general description of various items under different expenditure categories is shown below. For each contract to be financed by the loan, the different procurement methods or consultant selection methods, the need of pre-qualification, estimated costs, prior review Public Disclosure Authorized requirement, and time frame are indicated in the Procurement Plan. The Procurement Plan will be updated at least annually (or as required) to reflect actual project implementation needs and improvement in institutional capacity.

All procurement of project will be carried out by LUCRPO and each city’s PMO. Detail project implementation agencies of each city are as following table:

No. Project City Engineering content Implementation agency 1 Anshan Water Supply Anshan City Water Supply Company 2 Fushun Water Supply Fushun City Water Supply Company

Public Disclosure Authorized 3 Fushun Wastewater Fushun Wastewater Company 4 Fushun Solid Waste Fushun 5 Gaizhou Wastewater Gaizhou Wastewater Compan 6 Haicheng Water Supply Haicheng City Water Supply Company 7 Panjing Water Supply .Panjin Municipal Water Supply Corporation

8 Panjing Wastewater Panjin Drainage Company 9 Panjing Solid Waste Panjin Environmental Sanitation Department 10 Yingkou Water Supply Yingkou Water Affairs Company 11 Yingkou Wastewater Yingkou Municipal Drainage Company Yingkou Public Disclosure Authorized Economic Environmental Sanitation Department of Yingkou 12 Solid Waste Development Economic Development Zone Zone 13 Xingcheng Water Supply Xingcheng City Water Supply General Corporation

Works, goods and consultant services under LMC-2 projects are procured on a yearly basis and city governments approve the annual investment plan at the beginning of the year. Civil works are usually constructed within one or one and a half years. The construction season in northeast China is from April to November, so the bidding process shall be completed before April. Some civil works contracts in 2007 will be financed under retroactive financing. Equipment procurement will start from 2007, after the loan is signed.

2. Bank’s approval Date of the procurement Plan: Originally approved on July, 2010; the Updated Procurement Plan approved in December 21, 2012, Updated Procurement Plan in October 2013

3. Date of General Procurement Notice: Dec 24, 2006.

4. Period covered by this procurement plan: from November 2013 to December 2014.

II. Goods and Works and non-consulting services.

1. Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Guidelines for procurement: Thresholds for applicable procurement methods of LMC-2 have been determined as following table:

Contract Value Procurement Type Prior Review Threshold (US$) Method

≥3,000,000 ICB All

NCB

Remarks: Where goods are not normally available First 2 NCB goods contracts by each <3,000,000 from within China, PIU irrespective of value and all Goods the method of contracts ≥ USD 3 million. procurement will be ICB even if the contract value is less than USD 3 million.

<100,000 Shopping None

NA Direct contracting All DC contracts

≥25,000,000 ICB All Works/ Supply & First 2 NCB works contracts by each Installation <25,000,000 NCB PIU irrespective of value and all contracts ≥ USD 15 million.

Contract Value Procurement Type Prior Review Threshold (US$) Method

<200,000 Shopping None

NA Direct contracting All DC contracts

ICB –International Competitive Bidding NCB –National Competitive Bidding Remarks DC – Direct Contracting NA – Not Applicable

2. Prequalification: Not applicable.

3. Reference to Project Operational/Procurement Manual: Management manual for World Bank Loan Project in Liaoning Province» issued by Liaoning Financial bureau.

4. Proposed Procedures for CDD Components (as per paragraph. 3.17 of the Guidelines: No applicable.

5. Any Other Special Procurement Arrangements: Not applicable.

6. Procurement Packages with Methods and Time Schedule

1 2 3 4 5 6 7 8 9

2. Equipment & Material 0.00

3. Subtotal 0.00

Haicheng Water Supply(1) 1. Civil Work 4.18 Water-meter system 1,700 water-meter chambers/pipe HWS/1.4 1.28 NBF No No No 2014.3 2014.4-2014.10 upgrading replacement Enlarging of civil works for 40,000 m3/d to100,00 m3/d for HWS/1.5 Yuhuangshan & Yuhaungshan plant; 20,000 m3/d to 2.90 NCB No No Post 2013.12 2014.4-2014.10 Zhongyangpu water plants 30,000 m3/d for Zhongyangpu plant

2. Equipment & Material 3.99 Equipment supply & 40,000 m3/d to100,00 m3/d for HWS/21.1 installation of Yuhuangshan Yuhaungshan plant; 20,000 m3/d to 2.45 NCB No No Post 2013.12 2014.3-2014.10 and Zhongyangpu plants 30,000 m3/d for Zhongyangpu plant HWS/21.2 Procurement of water-meter 25,000 sets 1.49 NBF No No No 2014.3 2014.5-2014.10

3. Subtotal 8.17

Fushun Water Supply (2)

1 2 3 4 5 6 7 8 9

Expected Estimated Procure Prequalif Domestic Review by Bid- Comments Ref. No. Contract Name Description Cost (USD ment ication Preference Bank Opening (Implementation time) x 106) Method (Yes/No) (Yes/No) (Prior/Post) Date 1. Civil Work 17.92 Install D＝900-2200mm DI pipe, FWS/1.2-A Water distribution lines-A 4.41 NCB No No Post 2014.1 2014.3.-2014.10 23,00m FWS/1.2-B Water distribution lines-B 2.96 NCB No No Post 2014.1 2014.3.-2014.10 FWS/1.2-C Water distribution lines-C 3.18 NCB No No Post 2014.1 2014.3.-2014.10 Install D ＝ 1800~2000mm PCCP FWS/1.3 Water Transmission line-B 7.37 NBF No No No 2015.1 2015.4-2015.10 pipe，10km

2. Equipment/material 12.54 Leakage testing equipment Equipment of leakage testing, Lab. FWS/21.1 1.00 NCB No No Post 2013.12 2014.1-2014.6 & Vehicles Device and Vehicles Pipe material for water Pipe material for water distribution FWS/21.3 3.26 NCB No No Post 2014.1 2014.3-2014.8 distribution line (1) line-A Pipe material for water Pipe material for water distribution FWS/21.4 1.92 NCB No No Post 2014.1 2014.3-2014.10 distribution line (2) line-B Pipe material for Pipe material for water transmission FWS/21.5 6.36 NBF No No No 2015.1 2015.3-2015.10 transmission pipeline-B line-B

3. Subtotal 30.46

Fushun Solid Waste(3) 1. Civil Work 7.65 FSW/1.4 The closure of Yanwu dump 5.30 NBF No No No 2014 2014-2015 The eastern solid waste FSW/1.5 2.35 NBF No No No 2014 2014-2015 transfer station

2. Equipment/material 0.00

1 2 3 4 5 6 7 8 9

Yingkou Wastewater 1. Civil Work 0.00

2. Equipment/material 0.00

3. Subtotal 0.00

Yingkou Water Supply 1. Civil Work 0.00

2. Equipment & Material 0.00

3. Subtotal 0.00

Panjin Wastewater 1. Civil Work 0.00

2. Equipment & Material 0.00

3. Subtotal 0.00

Panjin Water Supply

1 2 3 4 5 6 7 8 9

2. Equipment & Material 2.87 Supply and installation of Rehabilitation of distribution PWS/21.2 water-meter, valves and 2.87 NCB No No Post 2014.2 2014.4-2014.12 network (2) pipes (2)

3. Subtotal 4.49

Panjin Solid Waste 1. Civil work 8.15 Transfer stations of Panshan PSW/1.3 Civil work of transfer stations 8.15 NCB No No Post 2013.11 2013.12-2014.8 and Dawa county

2. Equipment & Material 7.34 Equipment of transfer PSW/21.2 station and transportion for 7.34 ICB No No Prior 2013.11 2013.12-2014.10 Panshan and Dawa county

3. Subtotal 15.49

Gaizhou Wastewater (3) 2.74 GWW/1.5 Rehabilitation of ditches 2.54 NCB No No Post 2014.2 2014.3-2014.12 Slope protection for GWW/1.6 0.20 Shopping No No Post 2014.2 2014.4-2014.6 comprehensive treatment

1 2 3 4 5 6 7 8 9

2. Equipment & Material 0.84 One excavator and two wheel loader GWW/21.3 Engineering vehicles 0.84 NCB No No Post 2014.2 2014.4-2014.10 etc.

3. Subtotal 3.58

Total for LMC-2 69.84

Notes: 1. Because cost of labour and material increased, Haicheng Water Company submitted new procurement plan in September 2013 and the cost estimation of each contract has also be adjusted. 2. The loan amount of Fushun Water Supply component is to be adjusted from USD 19.86 million to USD 25.96 million by city’s PMO. Their procurement plan will be effective after the MTR proposal approved by WB. 3. The loan amount of Gaizhou Wastewater component is to be adjusted from USD 9.07 million to USD 14.87 million by city’s PMO and Liaoning province DRC. Their procurement plan will be effective after the MTR proposal approved by WB.

III. Selection of Consultants

1. Prior Review Threshold: Selection decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines Selection and Employment of Consultants:

Expenditure Contract Value Procurement Method Bank Prior Review Category (US$) >= 300K QCBS, QBS Firms: First contract for each selection method and all contracts >=USD 300 K; < 300K QCBS, QBS, CQS Firms: All SSS contracts; Consultants N/A SSS Individual Consultant: Only in Exceptional Cases; N/A IC SSS for individual consultant: >=USD 20 K

Notes: QCBS: Quality- and Cost-Based Selection CQS: Selection Based on the Consultants’ Qualifications QBS: Quality-Based Selection SSS: Single Source Selection IC: Individual Consultant selection procedure NA: Not Applicable

2. Short list comprising entirely of national consultants: Short list of consultants for services, estimated to cost less than US$ 500,000 equivalent per contract, may comprise entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.

3. Any Other Special Selection Arrangements: The following two consultant contracts will be carried out as retroactive contract in this project.

1 2 3 4 5 6 7 Estimated Review Expected Comments Ref. No. Description of Assignment Cost Selection by Bank Proposals (Implementati (US$ millio Method (Prior / Post) Submission on period) n) Date Technical assistance A3: Project management for 2007.9 - Package A: 0.10 CQs Prior 2007.8 retroactive project 2008.6 A4: Service of tendering 2007.9 - 0.10 NBF 2007.8 agency for retroactive project 2008.6 Subtotal 0.20

4. Consultancy Assignments with Selection Methods and Time Schedule 1 2 3 4 5 6 7 Estimated Expected Comments Ref. No. Description of Assignment Cost Selection Review Proposals (Implementati (US$ millio Method by Bank Submission on period) n) (Prior / Post) Date Technical assistance A1: Project management & 2008.12 – Package A: 1.60 QCBS Prior 2008.12 Asset management 2013.12 A2: Service of tendering 2008.6 – 0.90 NBF 2008.5 agency for normal loan project 2013.12

Subtotal of TA 3.50

5. Consultancy Assignments with Selection Methods and Time Schedule for GEF 1 2 3 4 5 6 7 Description of Assignment Estimated Selection Review Expected Comments Ref. No. Cost Method by Bank Proposals (Implementati (US$ (Prior / Post) Submission on period) million) Date B1 Capacity building of public 0.78 QCBS Prior 2013.8.2 2013.8 – utility Contract 2014.8 signed B2-a1 Data collection of network 0.19 CQS Post 2013.6.10 2013.6 – geographic information Contract 2013.12 system (GIS) for Anshan signed water supply Co. B2-a2 Data collection of network 0.19 CQS Post 2013.6.4 2013.4 – geographic information Contract 2013.10 system (GIS) for Haicheng signed water supply Co. B2-a3 Data collection of network 0.19 CQS Post 2013.12. 2014.1 – geographic information 2014.7 system (GIS) for Yingkou water supply Co. B2-b Consulting service of network 0.69 QCBS Prior 2013.8 2013.11 – GIS for Anshan and Haicheng 2014.7 water supply B2-b1 Consulting service of network 0.35 QCBS Prior 2013.12 2014.2 – GIS for Yingkou water supply 2014.11 B3-a B3-a: Consulting service 0.12 CQS Post 2013.10.18 2013.10 – contract of data Contract 2014.7 collection/value study for signed ecology service function of Dahuofang reservoir B3-b B3-b: Consulting service 0.18 CQS Post 2013.10.18 2013.10 – contract of basin ecology Contract 2014.7 compensation mechanism signed study for Dahuofang reservoir C Strategic planning of urban 0.94 QCBS Prior 2013.10.10 2013.10 – solid waste disposal for Contract 2014.10 Fushun, Panjin, Yingkou EDZ signed and Gaizhou city D Strategic planning of urban 0.73 QCBS Prior 2013.10.9 2013.10 – wastewater management for Contract 2014.10 Panjin and Gaizhou city signed Activity of experience 0.15 SOE 2013.11 – spreading, study lesson and 2014.11 Sea Environment Management of East Asian

Subtotal of GEF 4.51 Note： The savings of GEF will be relocated after discussion between Liaoning provincial finance bureau and LUCRPO.