PROCUREMENT PLAN Updated Procurement Plan, As of 10 September 2013 Basic Data

Currency Unit Lao Kip (LAK) LAK 7800.00 = US$1.00

Project Name: Smallholder Development Project (Additional Finacing) Country: Lao PDR Executing Agency: Ministry of Agriculture and Forestry Loan Amount: $5.5 million Loan Number: L2809-LAO Date of first Procurement Plan: 3 October 2011 Date of second Procurement Plan: 13 November 2012 Date of this Procurement Plan: 10 September 2013

A. Process Thresholds, Review and 2014 procurement plan

1. Project Procurement Thresholds

1. 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

National Competitive Bidding (NCB) for Works $100,000 - $1,500,000 National Competitive Bidding for Goods $100,000 - $500,000 Shopping for Works Below $100,000 Shopping for Goods Below $100,000 Direct Contracting Below $10,000

2. ADB Prior or Post Review

2. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement Method Prior or Post Comments Procurement of Goods and Works

Shopping for Works Prior/Post Prior/Post = First contract under prior and Shopping for Goods Prior/Post subsequently Post review Direct Contracting Prior

Recruitment of Consulting Firms

Single-Source Selection (SSS) Prior

Recruitment of Individual Consultants

Individual Consultants Selection Prior

3. Goods and Works Contracts Estimated to Cost More Than $1 Million

3. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within 2013

General Description Contract Value Procurement Prequalification Advertisement Comments Method of Bidders (y/n) Date (quarter/year) NOT APPLICABLE

4. Consulting Services Contracts Estimated to Cost More Than $100,000

4. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the year 2013 and 2014

NO General Description Contract Value Recruitment Advertisement Intern/National Comments Method Date (quarter/year) Assignment

NOT APPLICABLE

5. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000

5. The following table groups smaller-value goods and consulting services contracts for which procurement activity is either ongoing or expected to commence within the year 2013 and 2014

Page 1 of 5 General Description Contract Value Number of Procurement / Advertis Date/ Comments (cumulative) Contracts Recruitment Issuance of Method Bids docs Goods Materials and equipments for FPMGs and ATEC 1 Automatic scale- and plastic vaccuum sealers for $11,000 1 Shopping Nov-13 FPMGs 2 Fertilizer/seed sprayer equipments for FPMGs $21,120 1 Shopping Oct-13 3 Materials for FPMGs' retrial shops $56,000 1 Shopping Nov-13 4 Materials for upgrading organic plantation in Savannkhet $10,000 1 Shopping Oct-13 (Phakkha village) 5 Materials for Demonstration of organic cultivation and $25,000 1 Shopping Oct-13 kitchen at Lao-China Agriculture Cooperation Center, 6 Materials (bat dung and limes) $900 1 Direct contracting Sep-13 preparing document

7 Equipements (Small pump, tank and others) $6,760 1 Direct contracting Sep-13 preparing document 8 Materials and equipments for orange nursery in $30,000 1 Shopping Sep-13 preparing document Vientiane province Processing Equipments 9 Rice sorter Machine for miller groups $150,000 1 NCB Nov-13 10 Rice seed dryer (12 tons & 4 tons) for rice miller $29,375 1 Shopping Aug-13 Evaluate of EOI Market promotion equipment 11 Market information posters for markets $43,924 5 Shopping Sep-13 Others 12 Supplies and installation of Electrical Power $20,000 1 Shopping Nov-13 Transformer for rice sorter machine CONSULTING SERVICES 13 National Environmental Safeguarding Specialist (ESS) $9,000 1 ICS Sep-13 advertisement issued (3 person-months) 14 International PCR Economist (1 person-month) $20,000 1 ICS Jun-14 To be procured in June 2014

B. Indicative List of Packages Required Under the Project

6. The following table provides an indicative list of all procurement (goods, works and consulting services) over the life of the project. Contracts financed by the Borrower and others should also be indicated, with an appropriate notation in the comments section.

No General Description Estimated Estimated Procurement Domestic Comments Value Number of Method Preference (cumulative) Contracts Applicable GOODS 1 Motorbikes for ONPD office, DAFOs, and ATEC, 44 $68,640 1 Shopping N.A Completed units 2 Pick-up 4x4W (2) ONPD and 2x2W (1) for ATEC $79,500 1 Shopping N.A Completed vehicles 3 Computer (desktops & laptops) DAFOs, PPOs, ONPD $76,650 1 Shopping N.A Completed and ATEC and Photocopier for ONPD and 4 PPOs

4 Office equipment for DAFOs, PPOs, ONPD and ATEC $49,995 1 Shopping N.A Completed

5 Office equipment and furniture for Lao-China $8,376 1 Shopping N.A Completed Agricultural Cooperation Center, Champasak province

Production equipment

6 Rice transplanting equipment $49,040 1 Shopping N.A Completed 7 Fertilizer/seed sprayer equipments for FPMGs $21,120 1 Shopping N.A Post- harvest equipment 8 High capacity threshers $47,952 1 Shopping N.A Completed 9 Medium capacity rice seed graders $36,000 1 Shopping N.A Completed 10 Flat bed grain drier (2.5 tons) $43,316 1 Shopping N.A Completed 11 Storeroom facility for seed material at ATEC $55,244 1 Shopping N.A Completed (khammouane and VTE) 12 Bag sewing machines and weighting scale (100kg) $1,920 1 Direct contracting N.A Completed 13 Mowing equipment, small mowing machine and $11,688 1 Direct contracting N.A Completed fertilizer/seed sprayer equipments for ATEC and farmer groups 14 Metal wire and plastic sheet for farmer group in $840 1 Direct contracting N.A Completed Champasak 15 Automatic scale and plastic vaccuum sealers for $11,000 1 Shopping Nov-13 FPMGs 16 Materials for FPMGs' retrial shops $48,000 1 Shopping Nov-13 17 Materials for upgrading organic plantation in Savannkhet $10,000 1 Shopping Oct-13 (Phakkha village) 18 Materials for Demonstration of organic cultivation and $25,000 1 Shopping Oct-13 kitchen at Lao-China Agriculture Cooperation Center, Champasak province

Page 2 of 5 Seeds for Farmers group initiatives 19 Capital for seed fund establishment-R3 (for 8 new $122,510 12 Direct contracting N.A Completed (Contract signed) districts/dry/wet-season) ADB approved change in procurement method on 10 September 2012

20 Capital for seed fund establishment-R2 (for 8 new $12,075 1 Direct contracting N.A Completed (ADB approved districts/dry/wet-season) and 4 original district-CPS change in procurement method on 10 September 2012)

21 Capital for seed fund establishment-R2 (for 8 new $1,723 1 Direct contracting N.A Completed districts/dry/wet-season) and 4 original district-CPS 22 Capital for seed fund establishment R3 for farmer $8,997 4 Direct contracting N.A completed group in Champasak ( 4 original districts-wet season)

23 Rice bags $7,308 1 Direct contracting N.A completed 24 Seed capital for farmer group fertilizer fund-Urea (for 8 $29,066 4 Shopping N.A completed new district/dry season) 26 Corn seed for farmer group in Champasak and VTE $11,761 1 Direct contracting N.A completed 27 Vegetable seed for farmer group in Champasak and $7,863 1 Direct contracting N.A completed VTE 28 Job's tear and chili for farmer group in VTE $344 1 Direct contracting N.A completed

Materials and equipments to prepare compost for farmer group fertilizer fund(for 8 new districts/wet season) 29 Rice husk burner (22 units) $3,808 1 Direct contracting N.A completed 30 Soil mixer and soil grinder (11 units each) $34,862 1 Shopping N.A completed 31 Materials (bat dung and limes) $900 1 Direct contracting N.A preparing RFQ 32 Equipements (Small pump, tank and others) $6,760 1 Direct contracting N.A preparing RFQ 33 Bags for compost $1,460 1 Direct contracting N.A completed Veterinary equipment 34 Demonstrations - veterinary equipment and Seed $37,899 1 Shopping N.A Completed capital for farmer group vaccination revolving fund (for dry season) 35 Refridgerators for storing Vaccines for farmer group $13,731 1 Shopping N.A Completed

Processing equipment 36 processing equipment for farmer in Vientiane province $13,189 1 Direct contracting N.A Completed

37 processing equipment for farmer in Khammouane $2,588 1 Direct contracting N.A Completed province 38 processing equipment for farmer in Champasak $8,679 1 Direct contracting N.A completed province 39 Small rice milling machine for farmer groups and $37,500 1 Shopping N.A Completed moister tester for rice miller groups 40 Rice seed dryer (12 tons & 4 tons) for rice miller $29,375 1 Shopping N.A Evaluate of EOIs 41 Materials and equipments for orange nursery in $30,000 1 Shopping N.A preparing document Vientiane province 42 Rice sorter Machine for miller groups $150,000 1 NCB N.A To be procured in Q4 2013

Materials and equipment for organic vegetable group 43 Equipment (Pump, Tank, Springer system and Other) $92,708 1 Shopping N.A Completed

44 Material (plastic roof and other) $20,513 1 Shopping N.A Completed

Market promotion equipment 45 Booth support at Agric Show $18,885 1 Shopping N.A Completed 46 Market information posters for markets $4,181 1 Shopping N.A Completed

47 Market information posters for markets $43,819 5 Shopping N.A To be procured in Q4 2013

Laboratory equipment 48 Equipment for lab-operation for ATEC and for RRI $43,589 1 Shopping N.A Completed (Thasano, ) Others 49 Supplies and installation of Electrical Power $20,000 1 Shopping N.A To be procured in Q4 2013 Transformer for rice sorter machine

Page 3 of 5 Construction material for small scale irrigation rehabilitation 50 Construction materiald for small scale irrigation $10,181 1 Shopping N.A completed rehabilitation in khong district, Champassak province

51 Construction materialsd for small scale irrigation $8,892 1 Shopping N.A completed rehabilitation in , Champassak province 52 Construction materials for small scale irrigation $15,863 1 Shopping N.A completed rehabilitation in Atsaphanthong district, 53 Construction materiald for small scale irrigation $12,796 1 Shopping N.A completed rehabilitation in Phalanxay district, Savannakhet province 54 Construction materials for small scale irrigation $8,742 1 Shopping N.A completed rehabilitation in Xebangfai district, 55 Construction materials for small scale irrigation $6,391 1 Shopping N.A completed rehabilitation in , Khammouane province 56 Construction materials for small scale irrigation $6,904 1 Shopping N.A completed rehabilitation in Kasi district, Vientaine province CIVIL WORKS Champasak province 57 Construction of Dormitory facilities at Lao-China $23,587 1 Shopping N.A completed Agricultural Cooperation Center

58 Small scale irrigation rehabilitation in khong district, $13,320 1 Shopping N.A completed Champassak province

59 Renovation of new DAFO's office in Khong district $2,609 1 Shopping N.A completed Champasak

60 Small scale irrigation rehabilitation in Sanasomboun $15,351 1 Shopping N.A completed district, Champassak

61 Renovation of new DAFO's office in Sanasomboun $3,066 1 Shopping N.A completed district Champasak

62 Execution of additional work at Lao-China Agricultural $6,733 1 Direct contracting N.A completed Cooperation Center

Savannakhet province 63 Small scale irrigation rehabilitation Phalanxay district, $15,128 1 Shopping N.A completed Savannakhet 64 Renovation of new DAFO's office in Phalanxay district, $2,885 1 Shopping N.A completed Savanakhet 65 Small scale irrigation rehabilitation Atsaphanthong $15,301 1 Shopping N.A completed district, Savannakhet 66 Renovation of new DAFO's office in Atsaphangthong $3,013 1 Shopping N.A completed district, Savanakhet Khammouane province 67 Small scale irrigation rehabilitation in Xebangfai district, $12,222 1 Shopping N.A completed Khammouan 68 Renovation of new DAFO's office in Xebangfai district $3,272 1 Shopping N.A completed Khammouane 69 Small scale irrigation rehabilitation in Mahaxay district, $13,301 1 Shopping N.A completed Khammouan 70 Renovation of new DAFO's office in Mahaxay district $3,063 1 Shopping N.A completed Khammouane Vientiane province 71 Small scale irrigation rehabilitation in Sanakham district, $20,785 1 Shopping N.A completed Vientiane 72 Renovation of new DAFO's office in Sanakham district, $3,251 1 Shopping N.A completed Vientiane 73 Small scale irrigation rehabilitation in Kasi district, $21,342 1 Shopping N.A completed Vientiane 74 Renovation of new DAFO's office in Kasi district, $3,224 1 Shopping N.A completed Vientiane 76 Renovation of ONPD office $5,000 1 Shopping N.A completed

Page 4 of 5 No General Description Estimated Estimated Recruitment Type of Comments Value Number of Method Proposal (cumulative) Contracts Consulting Services 77 Project Implementation Consultants $402,000 4 SSS N.A ongoing (contract signed) 78 National Finance and Administration Specialist $34,290 1 ICS N.A ongoing (contract signed) 79 National Gender and Development Specialist (GDS) (3 $9,000 1 ICS N.A This was canclled due to no person-months) inputs from the consultant. EA

80 National Environmental Safeguarding Specialist (ESS) $9,000 1 ICS N.A ongoing (advertisement issue) (3 person-months) 81 District Based Project Implementers for 6 district $82,770 6 ICS N.A ongoing (contract signed) 82 International Pre and Post-harvest Handling Specialist $60,000 1 ICS N.A ongoing (Contract signed) (3 person-months) 83 International PCR Economist (1 person-month) $20,000 1 ICS N.A To be procured in June 2014 84 International M&E Specialist (2 person-months) $45,180 1 ICS N.A ongoing (Contract signed)

85 National Trainer on "Business principle mngt, FPMG $27,800 1 SSS N.A ongoing (Contract signed) mngt, Establishment of FPMG and revolving funds mngt" (short-term service)

86 National trainer on "Agro-processing Techniques" (short- $6,800 1 SSS N.A ongoing (Contract signed) term service) 87 National trainer on "Association Management" (short- $5,200 1 SSS N.A ongoing (Contract signed) term service)

C. National Competitive Bidding

1. General

7. The procedures to be followed for National Competitive Bidding (NCB) shall be those set forth for “Public Bidding” in Prime Minister’s Decree No. 03/PM of the Lao People’s Democratic Republic, effective 09 January 2004, and Implementing Rules and Regulations effective 12 March 2004, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines.

2. Application

8. Contract packages subject to NCB procedures will be those identified as such in the project Procurement Plan. Any changes to the mode of procurement from those provided in the Procurement Plan shall be made through updating of the Procurement Plan, and only with prior approval of ADB.

3. Eligibility

9. Bidders shall not be declared ineligible or prohibited from bidding on the basis of barring procedures or sanction lists, except individuals and firms sanctioned by ADB, without prior approval of ADB.

4. Advertising

10. Bidding of NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised on ADB’s website via the posting of the Procurement Plan.

5. Procurement Documents

11. The standard procurement documents provided with Ministry of Finance, Procurement Monitoring Office shall be used to the extent possible. The first draft English language version of the procurement documents shall be submitted for ADB review and approval, regardless of the estimated contract amount, in accordance with agreed review procedures (post and prior review). The ADB-approved procurement documents will then be used as a model for all procurement financed by ADB for the project, and need not be subjected to further review unless specified in the procurement plan.

6. Preferences

(i) No preference of any kind shall be given to domestic bidders or for domestically manufactured goods.

(ii) Suppliers and contractors shall not be required to purchase local goods or supplies or materials. 7. Rejection of all Bids and Rebidding

12. Bids shall not be rejected and new bids solicited without ADB’s prior concurrence.

8. National Sanctions List

13. National sanctions lists may be applied only with prior approval of ADB.

9. Corruption Policy

14. A bidder declared ineligible by ADB, based on a determination by ADB that the bidder has engaged in corrupt, fraudulent, collusive, or coercive practices in competing for or in executing an ADB-financed contract shall be ineligible to be awarded ADB-financed contract during the period of time determined by ADB.

10. Disclosure of Decisions on Contract Awards

15. At the same time that notification on award of contract is given to the successful bidder, the results of the bid evaluation shall be published in a local newspaper or well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each Bidder who submitted a Bid, (ii) bid prices as read out at bid opening, (iii) name of bidders whose bids were rejected and the reasons for their rejection, (iv) name of the winning Bidder, and the price it offered, as well as the duration and summary scope of the contract awarded. The executing agency/implementing agency shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected.

11. Member Country Restrictions

16. Bidders must be nationals of member countries of ADB, and offered goods, works and services must be produced in and supplied from member countries of ADB.

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