PROCUREMENT PLAN

Basic Data Project Name: Integrated Ecosystem and Water Resources Management in the Baiyangdian Basin Project Number: 36437-013 Approval Number: 2428/0194 Country: China, People's Republic of Executing Agency: Municipal Government Project Procurement Classification: Implementing Agency: N/A Project Procurement Risk: Project Closing Date: 31 July 2017 Project Financing Amount: US$ 262,433,000 ADB Financing: US$ 100,000,000 Cofinancing (ADB Administered): US$ 2,975,000 Non-ADB Financing: US$ 159,458,000 Date of First Procurement Plan: 24 June 2008 Date of this Procurement Plan: 12 February 2018, Version 6

A. Methods, Thresholds, Review and 18-Month Procurement Plan

1. Procurement and Consulting Methods and Thresholds

Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold Comments International Competitive Bidding for US$ 3,000,000 and Above Goods National Competitive Bidding for Goods Between US$ 100,000 and US$ 2,999,999 The first NCB is subject to prior review, thereafter post review. Shopping for Goods Up to US$ 99,999 Direct Contracting for Goods Up to US$ 10,000 Please reflect/summarize arrangement as per RRP/PAM International Competitive Bidding for US$ 10,000,000 and Above Works National Competitive Bidding for Works Between US$ 100,000 and US$ 9,999,999 The first NCB is subject to prior review, thereafter post review. Shopping for Works Up to US$ 99,999

Consulting Services Method Comments Consultant's Qualification Selection for Consulting Firm Quality- and Cost-Based Selection for Consulting Firm Individual Consultants Selection for Individual Consultant

2. Goods and Works Contracts Estimated to Cost $1 Million or More

The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months.

Review Advertisement Package Estimated Procurement Bidding General Description (Prior/ Date Comments Number Value Method Procedure Post) (quarter/year) None

3. Consulting Services Contracts Estimated to Cost $100,000 or More

The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months.

Review Advertisement Package Estimated Recruitment Type of General Description (Prior/ Date Comments Number Value Method Proposal Post) (quarter/year) None

4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts)

The following table lists smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months.

Goods and Works Procur Review Advertisement Package General Estimated Number of Bidding ement (Prior/ Date Comments Number Description Value Contracts Procedure Method Post) (quarter/year) None

Consulting Services Review Advertisement Package General Estimated Number of Recruitment Type of (Prior/ Date Comments Number Description Value Contracts Method Proposal Post) (quarter/year) None

B. Indicative List of Packages Required Under the Project

The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period).

Goods and Works Package General Estimated Estimated Number Procurement Review Bidding Comments Number Description Value of Contracts Method (Prior/Post) Procedure (cumulative) None

Consulting Services Review Package General Estimated Number of Recruitment Type of (Prior/ Comments Number Description Value Contracts Method Proposal Post) None

C. List of Awarded and On-going, and Completed Contracts

The following tables list the awarded and on-going contracts, and completed contracts.

1. Awarded and Ongoing Contracts

Goods and Works Awarded Advertisement Date of ADB Package General Estimated Procurement Contract Date Approval of Comments Number Description Value Method Value (quarter/year) Contract Award None

Consulting Services Date of ADB Awarded Advertisement Package General Estimated Recruitment Approval of Contract Date Comments Number Description Value Method Contract Value (quarter/year) Award None 2. Completed Contracts

Goods and Works Date of ADB Awarded Procur Advertisement Package General Estimated Approval of Date of Contract ement Date Comments Number Description Value Contract Completion Value Method (quarter/year) Award 0019 Xushui County 5,601,609.56 5,601,609.56 ICB Q1 / 2010 02-APR-10 16-DEC-10 WTP (including related services) 0014 Li County WTP 5,862,391.37 5,862,391.37 ICB Q1 / 2009 02-SEP-09 01-DEC-13 (including related services) 0013 Liushi Town 5,246,859.49 5,246,859.49 ICB Q1 / 2009 02-SEP-09 01-DEC-13 WTP (including related services) 0017 2,786,914.75 2,786,914.75 ICB Q3 / 2009 02-DEC-09 01-DEC-13 WTP (including related services) 0030 Xinxing Town 4,891,912.54 4,891,912.54 ICB Q3 / 2010 18-APR-11 01-DEC-13 0030 WTP (including related services) 0016 2,269,408.82 2,269,408.82 ICB Q3 / 2009 27-NOV-09 01-DEC-13 WTP (including related services) 0008 City 6,530,612.44 3,376,602.86 ICB Q1 / 2009 15-JUN-09 31-DEC-13 Water Supply System (including related services) 0035 Yi County Pipe 2,795,345.00 1,576,073.00 ICB Q2 / 2013 06-NOV-13 01-DEC-15 Network and Water Meters (including related services) EG-L2 Equipment and 3,391,387.00 2,816,984.80 ICB Q2 / 2015 03-MAY-16 30-JUN-17 0058 installation service– Li County WWTP II (electronic control system) EG-FS4 Pipeline-Baiyang 170,161.29 99,035.24 NCB Q4 / 2015 23-DEC-15 30-JUN-17 0052 dian Upstream Forestation-Shu nping County EG-FS3 Seedling and 1,162,904.00 1,058,048.28 NCB Q3 / 2015 02-NOV-15 30-JUN-17 0041 Fertilizer - Baiyangdian Upstream Forestation – Shunping County EG-FS5 Immersible 48,387.10 25,550.06 SHOPP Q4 / 2015 19-NOV-15 30-JUN-17 0043 pump - ING Baiyangdian Upstream Forestation– Shunping County EG-FL5 Immersible 65,985.86 61,421.93 SHOPP Q4 / 2015 12-JAN-16 30-JUN-17 0050 pump ING Baiyangdian Upstream Forestation-Lais hui County EG-B4 Electrical control 2,663,468.00 855,810.81 NCB Q2 / 2015 22-JUN-16 31-JUL-17 PCSS0062 equipment and related installation service - Baoding CSTC EG-Q3 Equipment 1,195,161.00 524,335.85 NCB Q2 / 2015 01-OCT-16 31-JUL-17 PCSS0066 (including drought fan, water pump, underwater propulsor, etc.) and related service - Qingyuan County WWTP II EG-Q2 Equipment 1,567,742.00 921,062.45 NCB Q2 / 2015 07-OCT-16 31-JUL-17 PCSS0065 (including electric , automatic control, instrumentation, dosing, sterilizing equipment, deodorization system equipment) and related services - Qingyuan County WWTP II EG-B3 Highly dry 3,187,032.00 2,556,341.58 ICB Q2 / 2015 13-SEP-16 31-JUL-17 PCSS0064 dewatering equipment and related installation services - Baoding CSTC EG-Q4 Non-standard 2,274,194.00 1,624,103.73 NCB Q2 / 2015 05-OCT-16 31-JUL-17 PCSS0067 machinery equipment and related services - Qingyuan County WWTP II EG-FL3 Seedling and 1,166,612.00 855,810.81 NCB Q3 / 2015 15-OCT-15 31-JUL-17 PCSS0051 Fertilizer - Baiyangdian Upstream Forestation – Laishui County G09585 Office and Field 24,539.22 150,425.42 SHOPP Q2 / 2013 22-MAY-13 31-JUL-17 equipment PNRs ING EG-FL4 Pipeline- 90,278.82 88,755.04 SHOPP Q4 / 2015 12-JAN-16 31-JUL-17 PCSS0049 Baiyangdian ING Upstream Forestation– Laishui County 0021 Baigou Town 3,415,717.86 1,921,201.80 ICB Q3 / 2010 25-DEC-10 WTP (including related services EG-B2 Digestive system 8,362,097.00 6,128,512.71 ICB Q2 / 2015 03-SEP-16 0063 equipment and related installation services - Baoding CSTC EG-L3 Equipment and 1,994,032.00 1,445,318.62 NCB Q2 / 2015 18-MAY-16 0059 installation service– Li County WWTP II (mechanical equipment) 0020 Wangkuai-Xiday 414,014.96 401,216.07 NCB Q1 / 2010 25-JUN-10 ang IWM (including related services) tbd01 4,991,836.43 4,991,836.43 NCB Q2 / 2009 02-APR-09 01-FEB-10 0001 Wastewater Treatment Plant (WTP) and Pipe Network tbd04 Tang County 5,130,450.86 5,130,450.86 NCB Q1 / 2009 29-MAR-09 14-MAR-10 0004 WTP and Pipe Network tbd09 Baigou Town 6,288,185.56 6,288,185.56 NCB Q2 / 2009 04-MAY-09 16-DEC-10 0011 WTP and Pipe Network tbd10 Xiong County 3,209,021.42 3,209,021.42 NCB Q2 / 2009 15-MAY-09 16-DEC-10 0012 WTP and Pipe Network tbd05 Mancheng 5,635,656.60 5,635,656.60 NCB Q1 / 2009 27-MAR-09 10-DEC-12 0005 County WTP and Pipe Network tbd02 Li County WTP 4,234,629.76 4,234,629.76 NCB Q1 / 2009 28-MAR-09 12-SEP-13 0002 and Pipe Network tbd03 Liushi Town 2,955,866.52 2,955,866.52 NCB Q1 / 2009 28-MAR-09 12-SEP-13 0003 WTP and Pipe Network tbd11 Xushui County 78,058,413.0 78,058,413.02 NCB Q3 / 2009 27-SEP-09 12-SEP-13 0018 WTP and Pipe 2 Network 0007 Dingzhou City 1,570,412.47 1,570,412.47 NCB Q3 / 2008 30-MAR-09 01-DEC-13 ADB contract pipe of financing waterhead area cancelled. and distribution Domestic network and funds to pipeline network finance. 0026 Wangkuai 3,068,048.76 3,335,792.19 NCB Q2 / 2009 02-NOV-09 01-DEC-13 Xidayang Reservoir Upstream Connection under IWM Subproject tbd14 Xinxing Town 4,601,515.32 4,601,515.32 NCB Q3 / 2010 07-SEP-10 01-DEC-13 0028 WTP and Pipe Network 0027 Yimuquan 2,518,408.71 2,825,020.02 NCB Q2 / 2009 08-DEC-09 01-DEC-13 Recharge tunnel under IWM Subproject 0010 Baiyangdian 1,679,326.56 1,929,492.40 NCB Q2 / 2009 28-APR-09 31-DEC-13 Recharge Tunnel under IWM Subproject 0009 Wanzi Tunnel 3,087,650.43 2,864,375.23 NCB Q2 / 2009 02-APR-09 31-DEC-13 and Zhuajiayu under Integrated Water Management (IWM) Subproject 0006 Works and 1,504,329.07 5,539,412.15 NCB Q1 / 2009 30-MAR-09 31-DEC-13 Installation of equipment for Dingzhou City Deep well pump house and distribution 0036 Yi County Water 5,349,926.00 742,674.03 NCB Q3 / 2013 06-NOV-13 01-DEC-15 Gathering, Pipe Network Updating, Water Resources Protection and Management CW-FS1 Civil Works 379,354.00 334,262.61 NCB Q1 / 2015 23-DEC-15 30-JUN-17 0042 (irrigation infrastructure,)- Baiyangdian Upstream Forestation – Shunping County CW-FL2 Civil Works (land 2,405,322.00 1,672,079.54 NCB Q1 / 2015 29-JUL-15 30-JUN-17 0038 preparation)- Baiyangdian Upstream Forestation – Laishui County CW-FS2 Civil Works (land 2,487,419.00 1,892,001.53 NCB Q1 / 2015 23-APR-15 30-JUN-17 0037 preparation)- Baiyangdian Upstream Forestation – Shunping County CW-L1 Civil Works – Li 8,164,400.00 6,383,476.73 NCB Q2 / 2015 24-MAR-16 30-JUN-17 0057 County Wastewater Treatment Plant (WWTP) II CW-FL9 2 new wells, 72,600.00 58,785.22 SHOPP Q4 / 2015 30-DEC-15 30-JUN-17 0047 matching well ING stations and impounding reservoirs, Laishui County CW-FL6 3 new wells, 87,600.00 72,633.66 SHOPP Q4 / 2015 30-DEC-15 30-JUN-17 0044 matching well ING stations and impounding reservoirs, Laishui County CW-FL8 3 new wells, 98,600.00 82,996.44 SHOPP Q4 / 2015 30-DEC-15 30-JUN-17 0046 matching well ING stations and impounding reservoirs, Laishui County CW-FL7 3 new wells, 68,700.00 57,089.47 SHOPP Q4 / 2015 30-DEC-15 30-JUN-17 0045 matching well ING stations, Laishui County CW-B1 Civil Works – 4,063,435.00 1,582,312.69 NCB Q2 / 2015 25-AUG-15 31-JUL-17 PCSS0039 Baoding Centralized Sludge Treatment Center (CSTC) 3 new wells, 98,600.00 82,996.44 SHOPP Q4 / 2015 30-DEC-15 31-JUL-17 PCSS0048 CW-FL10 matching well ING stations and impounding reservoirs, Laishui County CW-Q1 Civil Works – 9,082,258.00 5,539,412.15 NCB Q1 / 2015 07-OCT-15 0040 Qingyuan County WWTP II 0022 Pipe Network 2,648,825.64 932,183.39 NCB Q3 / 2008 22-DEC-08 Phase I (Yi County) 0025 Pipe Network 2,763,388.93 .00 NCB Q3 / 2008 25-DEC-08 ADB Phase II (Yi financing County) cancelled. Domestic funds to finance. 0024 Yi County WTP 668,743.65 .00 NCB Q3 / 2008 08-DEC-08 ADB financing cancelled. Domestic funds to finance.

Consulting Services Date of ADB Awarded Recruit Advertisement Package General Estimated Approval of Date of Contract ment Date Comments Number Description Value Contract Completion Value Method (quarter/year) Award 0029 External 188,194.40 187,819.52 CQS Q3 / 2010 08-OCT-10 31-JUL-17 Monitoring 0031 Midterm 89,500.00 88,998.00 ICS Q3 / 2012 03-DEC-12 31-JUL-17 individual consultant 0032 Midterm 26,399.28 21,848.37 ICS Q3 / 2012 14-DEC-12 31-JUL-17 individual consultant 0033 Midterm 39,397.89 37,963.34 ICS Q3 / 2012 14-DEC-12 31-JUL-17 individual consultant 0034 Midterm 29,950.26 21,903.10 ICS Q3 / 2012 14-DEC-12 31-JUL-17 individual consultant 0015 ADB-Financed 1,928,464.92 411,664.87 QCBS Q3 / 2008 30-OCT-09 31-JUL-17 consultants G05595 GEF technical 1,497,250.00 1,497,250.00 QCBS Q1 / 2010 13-AUG-10 31-JUL-17 specialists 0053 Water 99,800.00 48,320.00 ICS Q2 / 2015 09-MAY-16 31-JUL-17 Resources Management and Environment Specialist 0061 Audit Specialist 98,300.00 62,394.42 ICS Q2 / 2015 02-JUN-16 31-JUL-17 0056 Environment 35,300.00 31,420.90 ICS Q2 / 2015 11-MAY-16 31-JUL-17 Specialist 0060 Financial 28,200.00 46,517.49 ICS Q2 / 2015 02-JUN-16 31-JUL-17 Specialist 0054 Project 98,300.00 93,582.29 ICS Q2 / 2015 11-MAY-16 31-JUL-17 Management Specialist 0055 Wastewater and 98,300.00 91,487.65 ICS Q2 / 2015 11-MAY-16 31-JUL-17 Water Supply Specialist

D. National Competitive Bidding

A. Regulation and Reference Documents

1. The procedures to be followed for national competitive bidding shall be those set forth in The Government Procurement Law of People's Republic of China approved on 29 June 2002 and Law of the People's Republic of China on Bid Invitation and Bidding of the People's Republic of China promulgated on August 30, 1999 with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines.

B. Procurement Procedures

1. Competitive Bidding Procedure (Procurement Law Art. 26 and Law on Bidding Art. 10).

2. Public tendering is the acceptable method of government procurement, and public invitation is the accepted bid invitation mode.

2. Eligibility

3. The eligibility of bidders shall be as defined under section I of the Procurement Guidelines; accordingly, no bidder or potential bidder should be declared ineligible for reasons other than those provided in section I of the Guidelines, as amended from time to time.

3. Advertising

4. All invitations to prequalify or to bid shall be advertised in the national press (China Daily Newspaper) or a free and open access website (www.chinabidding.com). Such advertisement shall be made in sufficient time for prospective bidders to obtain prequalification or bidding documents and prepare and submit their responses. In any event, a minimum preparation period of twenty-eight (28) days shall be given. The preparation period shall count (a) from the date of advertisement, or (b) when the documents are available for issue, whichever date is later. The advertisement and the prequalification and bidding documents shall specify the deadline for such submission.

4. Bidding Period

5. The minimum bidding period is 28 days prior to the deadline for the submission of bids.

5. Participation by Government-Owned Enterprises

6. Government owned enterprises in the Borrower's country may be permitted to bid if they can establish that they (a) are legally and financially autonomous, (b) operate under commercial law and (c) are not a dependent agency of the Borrower/Project Executing Agency.

6. Rebidding

7. Re-bidding shall not be allowed solely because the number of bids is less than three (3).

C. Bidding Documents

7. Qualification requirements

8. Qualification requirements of bidders and the method of evaluating the qualification of each bidder shall be specified in detail in the bidding documents, and in the prequalification documents if the bidding is preceded by a prequalification process.

8. Bid Submission and Opening

9. Bidders shall be allowed to submit bids by mail or by hand. 10. All bids shall be opened in public; all bidders shall be afforded an opportunity to be present (either in person or through their representatives) at the time of bid opening, but bidders shall not be required to be present at the bid opening.

9. Bid Evaluation and Award

11. No bid may be rejected solely on the basis that the bid price falls outside any standard contract estimate, or margin or bracket of average bids established by the Borrower/Project Executing Agency.

12. Each contract shall be awarded to the lowest evaluated responsive bidder, that is, the bidder who meets the appropriate standards of capability and resources and whose bid has been determined (a) to be substantially responsive to the bidding documents and (b) to offer the lowest evaluated cost. The winning bidder shall not be required, as a condition of award, to undertake responsibilities for work not stipulated in the bidding documents or otherwise to modify the bid as originally submitted.

10. ADB Policy Clauses

13. Each contract financed with the proceeds of the Loan shall provide that the suppliers and contractors shall permit ADB, at its request, to inspect their accounts and records relating to the performance of the contract and to have said accounts and records audited by auditors appointed by ADB.

14. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that the Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for the contract in question.

15. A provision shall be included in all bidding documents for NCB works and goods contracts financed by ADB stating that ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices or any integrity violation in competing for, or in executing, ADB-financed contract.