Procurement 1. Procurement for the proposed Project will be carried out in accordance with “Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011 (revised July 2014) and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011 (revised July 2014). The various items under different expenditure categories are described in general below. For each contract to be financed by the Project, the different procurement methods or consultant selection methods, estimated costs, prior review requirements, and time frame are agreed between the Recipient and the Bank in the Procurement Plan. 2. Assessment of the implementing entities’ capacity to implement procurement. BTS and ARIS will implement the Project. The procurement capacity assessment of BTS and ARIS was carried out by the Bank using the Procurement Risk Assessment and Management System (P-RAMS). The review identified a number of risks related to procurement policy and institutional arrangements which need to be mitigated. The procurement risks include: (i) BTS officials, who would be involved in some Project procurements through Tender Committees, may not be familiar with Bank procurement procedures; political developments may lead to the frequent turnover of tender committee members; (ii) Potential procurement delays: Experience with past and ongoing projects in the country show frequent procurement delays due to poor procurement planning; (iii) Low level of competition: Past experience indicates that procurement in the country has not attracted adequate competition; (iv) Inadequate contract management and lower-than-required quality of procured equipment; (v) Perceived high level of corruption as measured by Transparency International;. 3. The agreed mitigation measures are: (i) BTS will prepare an OM including a Procurement chapter, to be agreed with the World Bank, which will include procurement and contract management procedures to ensure the clear division of responsibilities among staff. The contract management procedures should minimize the discretion given to public officials involved for certification of invoices, issue of completion certificates and making payments. All officials concerned should be required to fulfill their obligations within a specified period; (ii) BTS and ARIS procurement staff will receive intensive training in international procurement under the Bank Guidelines, including the regional procurement seminars that will be organized by the Bank and other events (if any); (iii) BTS and ARIS will establish ad-hoc tender committees; and (iv) each staff involved in procurement, including each member of a tender committee, to certify in writing that his or her involvement does not create any conflict of interest (e.g., relationship with a supplier or consultant); (v) BTS and ARIS will organize a half- day seminar for senior officials involved in procurement to make them aware of Bank procurement requirements; (vi) in addition to the publication of tender notices and contract award information as required by the Bank Procurement and Consultant Guidelines, BTS and ARIS will publish all tenders and contract award information in the national press, the public procurement bulletin and on their respective websites (); (vii) BTS and ARIS will put in place the necessary mechanisms to ensure that suppliers and consultants are paid according to their contract terms without any delays; (ix) inform the World Bank of every complaint received from any supplier, contractor or consultant relating to the procurement process, and respond promptly to such complaints; and (x) maintain up-to-date records and make these available to Bank staff, and auditors. 4. To mitigate the identified procurement-related risks, the following mitigation actions are suggested: Actions Deadline 1. Training of staff involved in project procurement Ongoing activities on the Bank’s Procurement and Consultant Guidelines and the public procurement 2. Preparation of a Project OM with a detailed chapter on By effectiveness procurement, including detailed description of procurement decision making processes and accountability for procurement decisions 3. Preparation of a detailed procurement plan for the first Appraisal and 18 months of the Project and submission of updates as agreed by required Negotiations 4. Preparation of the bidding documents, terms of Negotiations/first references and draft request for proposals for the first months of year of project implementation to facilitate the implementation initiation of procurement as per the agreed Procurement Plan 5. Ensuring quality review of the technical specifications/ Ongoing terms of references, Bid Evaluation Reports and the final deliverables 6. Putting in place an efficient contract monitoring Ongoing mechanism designed to maximize overall value for money of contracting activities 7. Regular procurement support during project Ongoing implementation by Bank procurement staff 5. The overall project risk for procurement is “High”. After mitigation measures implemented, the residual risk will be “Substantial”. 6. Procurement Arrangement: As indicated above, it was agreed that procurement responsibilities will be entrusted to PIU under BTS and ARIS. To assist BTS, the PIU will hire a procurement consultant. 7. Methods of procurement: The following procurement methods shall be used under the Project. It has been agreed that if a particular invitation for bid comprises of several packages, lots or slices, and invited in the same invitation for bid, then the aggregate value of the whole package determines the applicable threshold amount for procurement and also for the review by the Bank. 8. Procurement of Works. Works procured under the project will include [to be detailed during pre-appraisal]. The procurement will be done using appropriate Standard Bidding Documents (SBD) agreed with the Bank. The SBD shall contain draft contract and conditions of contract acceptable to the Bank. National Competitive Bidding (NCB) will be used for civil works contracts estimated to cost more than US$50,000. Shopping for Minor Works will be used for civil works contracts estimated to cost US$50,000 or less. 9. Procurement of Goods. Goods procured under this project would include [to be detailed during pre-appraisal]. The procurement will be done using appropriate form of Invitation to Quote (ITQ) agreed with the Bank. The ITQ shall contain draft contract and conditions of contract acceptable to the Bank. Shopping will be used for goods contracts estimated to cost less than US$100,000 per contract. 10. Procurement of non-consulting services is not anticipated. 11. Selection of Consultants. Consultancy services will include [to be detailed at pre- appraisal]. Short lists of consultants for services estimated to cost less than US$300,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.6 of the Consultant Guidelines. 12. Training and Operational Costs. The project will finance the operating costs of BTS and ARIS, comprising mainly salaries and fees of contractual staff, office operations, travel and subsistence expenses. These will be procured using the existing administrative procedures of BTS and ARIS which were reviewed and found acceptable to the Bank. BTS and ARIS will prepare annual operational budget for the Bank team’s review and clearance. 13. Complaint Handling Mechanism: To deal with procurement complaints received by BTS and ARIS, a complaint handling mechanism for the Project will be developed and documented in the procurement section of the OM. On receipt of complaints, immediate action will be initiated to acknowledge the complaint and redress in reasonable time frame. All complaints will be dealt at levels higher than that of the level at which the procurement process was undertaken. Any complaint received is to be forwarded to the Bank for information and the Bank will be kept informed after the complaint is redressed. 14. Procurement Plan: A draft procurement plan has been developed covering the above procurement activities and agreed at Negotiations. The draft Procurement Plan is attached in Annex [5]. The Procurement Plan will be updated annually or as needed to: (i) reflect progress in project implementation; (ii) accommodate changes that should be made; and (iii) add new packages necessary for the Project. Each update will be subject to Bank’s prior review. The Procurement Plan will be published on the World Bank website. Procurement under the Project will be carried out in accordance with the agreed Procurement Plan and as updated. 15. Project OM: The procurement chapter of the project OM will cover all procurement aspects under the project such as: procurement implementation arrangements, procurement plan and reporting, procurement methods and thresholds, responsibilities of procurement staff and evaluation committees, procurement process including contract monitoring, procurement control procedures and complaints handling procedure 16. Additional Provisions for National Competitive Bidding: The standard provisions for NCB will be applied to all the NCB contracts in the Kyrgyz Republic as per Financing Agreement 17. Procurement Thresholds: The thresholds for procurement methods and Bank’s prior review thresholds are noted below. Expenditur Contract Procurement Bank Prior Review e Category Value (USD) Method >= 5, 000 ICB All ICB contracts Civil Works, 000 < 5, 000,000 NCB NA S&I of Plant & <50 000 Shopping NA Equipment NA DC All contracts >= USD 5,000,000 Goods >= 1, 000 ICB All contracts >= USD 000 1,500,000 <1, 000 000 NCB NA <100 000 Shopping NA NA DC All contracts >= USD NA 1,500,000 QCBS, QBS, FBS, All contracts >= USD 500,000 Consultant LCS and CQS* for firms; all contracts >= USD Services NA SSS 200,000 for individuals; NA IC Note ICB – International Competitive Bidding s: NCB – National Competitive Bidding DC – Direct Contracting QCBS – Quality and Cost Based Selection QBS – Quality Based Selection FBS – Fixed Budget Selection LCS – Least Cost Selection *CQS – Selection Based on Consultants’ Qualification below $300,000 depending on the nature of assignment SSS – Single (or Sole) Source Selection IC – Individual Consultant selection procedure NA – Not Applicable 18. Procurement Supervision: The procurement post review will be carried out on a sample basis (20% in terms of number of contracts) by the procurement specialist based in the region/country office and one ex-post review report will be prepared per fiscal year, including findings of physical inspections for not less than 10 percent of the contracts awarded during the review period. In addition, two supervision missions are expected to take place per year. 19. Disclosure: The following documents shall be disclosed on BTS and ARIS website: (i) procurement plan and updates, (ii) invitation for bids for goods and works for all ICB and NCB contracts, (iii) request for expression of interest for selection/hiring of consulting services (firms), (iv) contract awards of goods and works procured following ICB/NCB procedures, (v) short list of consultants(firms) for QCBS and LCS, (vi) contract award of all consultancy services (firms), and (vii) list of contracts following DC, CQS or SSS on a quarterly basis. The following details will be sent to the Bank for publishing on the Bank’s external website and UNDB: (i) invitation for bids for procurement of goods and works using ICB procedures, (ii) request for expression of interest for consulting services with estimated cost more than $300,000, (iii) contract award details of all procurement of goods and works using ICB procedure, (iv) contract award details of all consultancy services with estimated costs above $300,000, and (v) list of contracts/purchase orders placed following SSS, CQS or DC procedures on a quarterly basis. PROCUREMENT Kyrgyz Republic : Heat Supply Improvement Project PLAN General Information Country: Kyrgyz Republic Bank’s Approval Date of the Original Procurement Plan: 2019-10-14 2022-03-10 Revised Plan Date(s): (comma delineated, leave blank if none) Project ID: P157079 GPN Date: 2019-10-03 Project Name: Heat Supply Improvement Project Loan / Credit No: IDA / D2400 C Executing Agency(ies): ommunity Development and Investment Agency WORKS Activity Reference No. / Estimated Actual Draft Bidding Bid Evaluation Report Loan / Credit Procurement Prequalification High SEA/SH Procurement Process Draft Pre-qualification Prequalification Specific Procurement Bidding Documents as Proposal Submission / Contract Description Component Review Type Method Market Approach Amount Amount Document / and Recommendation Signed Contract No. Process (Y/N) Risk Document Type Status Documents Evaluation Report Notice / Invitation Issued Opening / Minutes Completion (US$) (US$) Justification for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned IDA-HSIP-NCB-2020-1 / Construction works at school Component 2 Demonstrating number 82 in the Ala-Too the benefits of energy Single Stage - One 2022-04- microdistrict in Bishkek and IDA / D2400 Post Request for Bids Open - National 881,528.00 511,456.23 Signed 2020-12-15 2020-12-30 2020-12-20 2020-12-30 2021-01-31 2021-01-29 2021-03-02 2021-04-13 2021-04-06 2021-04-29 efficiency improvements in Envelope 06 schools in the village public buildings Sretenka, Moskovsky district, Chui region (2 lots) IDA-HSIP-NCB-2021-1 / Construction works of secondary school named after Component 2 Demonstrating R. Shukurbekov, village the benefits of energy Single Stage - One 2022-01- Маimak, Kara-Buura rayon, IDA / D2400 Post Request for Bids Open - National 943,000.00 242,262.75 Signed 2021-04-06 2021-04-16 2021-04-11 2021-04-16 2021-05-23 2021-05-14 2021-06-22 2021-06-09 2021-07-27 2021-06-23 efficiency improvements in Envelope 23 Таlas oblast and of secondary public buildings school named after А. Soltonov, village Kalba, Таlas rayon, Таlas oblast (2 lots) IDA-HSIP-NCB-2021- 1/LOT2/RT1 / Construction Component 2 Demonstrating works of secondary school the benefits of energy Single Stage - One Other (with field 2022-04- IDA / D2400 Post Request for Bids Open - National 483,000.00 226,358.79 Signed 2021-06-14 2021-06-18 2021-06-19 2021-06-18 2021-07-31 2021-07-16 2021-08-30 2021-08-05 2021-10-04 2021-08-19 named after R. Shukurbekov, efficiency improvements in Envelope for explanation) 02 village Маimak, Kara-Buura public buildings rayon Talas oblast IDA-HSIP-NCB-2021-2 / National Construction works of Component 2 Demonstrating Procurement hospital building (energy the benefits of energy Single Stage - One 2022-07- IDA / D2400 Post Request for Bids Open - National Document - 1 1,930,000.00 0.00 Canceled 2021-09-15 2021-12-24 2021-09-20 2021-12-24 2021-11-01 2022-01-25 2021-12-01 2022-02-17 2022-01-05 efficiency), in village efficiency improvements in Envelope 04 Envelope process Panfilovskoye, Panfilov rayon public buildings (Non Bank-SPD) of Chui oblast IDA-HSIP-NCB-2021-3 / National Component 2 Demonstrating Construction works of Procurement the benefits of energy Single Stage - One 2022-08- kindergarten №5 "Altyn- IDA / D2400 Post Request for Bids Open - National Document - 1 250,000.00 169,907.52 Signed 2021-11-01 2021-11-03 2021-11-06 2021-11-03 2021-12-06 2021-12-03 2022-01-05 2021-12-24 2022-02-09 2022-01-18 efficiency improvements in Envelope 08 Balalyk", p. Novopokrovka, Envelope process public buildings Issyk-Ata district, Chui region (Non Bank-SPD) SECO-HSIP-NCB-2022-1 / Construction works at school National Component 2 Demonstrating #89 named after P. Procurement Under the benefits of energy Single Stage - One 2022-11- Zhumanazarov in Jalal-Аbad IDA / D2400 Post Request for Bids Open - National Document - 1 1,203,124.00 0.00 Implementat 2022-02-07 2022-02-18 2022-02-12 2022-02-18 2022-03-26 2022-04-25 2022-05-30 efficiency improvements in Envelope 26 oblast and school #15 named Envelope process ion public buildings after А.Мukanov in Issyk-Kul (Non Bank-SPD) oblast (2 lots) IDA-HSIP-NCB-2022-2/RT1 National / Construction works of Component 2 Demonstrating Procurement Pending hospital building (energy the benefits of energy Single Stage - One 2022-12- IDA / D2400 Post Request for Bids Open - National Document - 1 1,930,000.00 0.00 Implementat 2022-03-11 2022-03-16 2022-04-27 2022-05-27 2022-07-01 efficiency), in village efficiency improvements in Envelope 28 Envelope process ion Panfilovskoye, Panfilov rayon public buildings (Non Bank-SPD) of Chui oblast GOODS Activity Reference No. / Draft Bidding Bid Evaluation Report Loan / Credit Procurement Prequalification Estimated Actual Amount Process Draft Pre-qualification Prequalification Specific Procurement Bidding Documents as Proposal Submission / Description Component Review Type Method Market Approach Document / and Recommendation Signed Contract Contract Completion No. Process (Y/N) Amount (US$) (US$) Status Documents Evaluation Report Notice / Invitation Issued Opening / Minutes Justification for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual IDA-HSIP-G-2019-1 / Goods Component 3: Demonstrating required for effective project the benefits of energy Request for Single Stage - One IDA / D2400 Post Open - National 17,000.00 0.00 Canceled 2019-11-02 2019-12-28 2020-06-25 implementation (Office efficiency improvements in Quotations Envelope equipment - computer etc) public buildings IDA-HSIP-G-2019-1/RT1 / Component 3: Demonstrating Goods required for effective the benefits of energy Request for Single Stage - One IDA / D2400 Post Open - National 17,000.00 11,673.50 Completed 2020-01-17 2020-03-13 2020-02-24 2020-09-09 2020-03-19 project implementation (Office efficiency improvements in Quotations Envelope equipment - computer etc) public buildings IDA-HSIP-G-2020-1 / Goods Component 3: Demonstrating required for effective project the benefits of energy Request for Single Stage - One IDA / D2400 Post Open - National 4,000.00 3,784.17 Completed 2020-11-14 2020-11-06 2021-01-09 2020-12-07 2021-07-08 2021-01-05 implementation (office efficiency improvements in Quotations Envelope furniture) public buildings Component 2 Demonstrating IDA-HSIP-G-2021-1 / Goods the benefits of energy Request for Single Stage - One required for effective project IDA / D2400 Post Open - National 4,000.00 3,723.58 Signed 2021-09-20 2021-09-17 2021-11-15 2021-11-10 2022-05-14 efficiency improvements in Quotations Envelope implementation (laptops) public buildings NON CONSULTING SERVICES Activity Reference No. / Draft Bidding Bid Evaluation Report Loan / Credit Procurement Prequalification Estimated Actual Amount Process Draft Pre-qualification Prequalification Specific Procurement Bidding Documents as Proposal Submission / Description Component Review Type Method Market Approach Document / and Recommendation Signed Contract Contract Completion No. Process (Y/N) Amount (US$) (US$) Status Documents Evaluation Report Notice / Invitation Issued Opening / Minutes Justification for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual CONSULTING FIRMS Activity Reference No. / Combined Evaluation Loan / Credit Contract Type Estimated Actual Amount Expression of Interest Short List and Draft Request for Proposals Opening of Technical Evaluation of Description Component Review Type Method Market Approach Process Status Terms of Reference Report and Draft Signed Contract Contract Completion No. Amount (US$) (US$) Notice Request for Proposals as Issued Proposals / Minutes Technical Proposal Negotiated Contract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Page 1 IDA-HSIP-CQS-2019-1 / Component 3: Demonstrating First batch: Detailed Designs Consultant the benefits of energy for improved Energy Efficiency IDA / D2400 Post Qualification Open - International 250,000.00 175,349.41 Signed 2019-10-10 2020-03-03 2019-10-31 2019-11-06 2019-12-14 2020-03-12 2020-01-13 2020-04-08 2020-02-17 2020-05-08 2020-08-15 efficiency improvements in and Seismic Safety and Author Selection public buildings supervision IDA-HSIP-CQS-2020-2 / Component 3: Demonstrating Consultant Second batch: Detailed the benefits of energy IDA / D2400 Post Qualification Open - International 270,000.00 140,324.38 Signed 2019-10-10 2019-12-05 2019-10-31 2019-12-06 2019-12-14 2020-08-12 2020-01-13 2020-08-12 2020-02-17 2020-09-16 2020-08-15 seismic safety and energy efficiency improvements in Selection efficiency assessments public buildings Component 3: Demonstrating IDA-HSIP-LCS-2020-8 / the benefits of energy Least Cost IDA / D2400 Post Open - International 100,000.00 0.00 Canceled 2020-01-15 2020-02-05 2020-03-20 2020-04-17 2020-05-17 2020-06-21 2020-07-26 2021-01-22 Project Audit efficiency improvements in Selection public buildings IDA-HSIP-CQS-2020-1 / Component 2 Demonstrating First batch: Construction Consultant the benefits of energy Supervision of Implementation IDA / D2400 Post Qualification Open - International 150,000.00 140,024.21 Signed 2020-08-14 2020-08-12 2020-09-04 2020-08-21 2020-10-18 2021-02-02 2020-11-17 2021-02-02 2020-12-22 2021-02-04 2021-06-20 efficiency improvements in of Energy Efficiency and Selection public buildings Seismic Safety Measures Component 2 Demonstrating Consultant IDA-HSIP-CQ-2020-4 / the benefits of energy IDA / D2400 Post Qualification Open - International 40,000.00 26,321.79 Signed 2020-08-24 2020-11-04 2020-09-14 2020-11-06 2020-10-28 2021-02-05 2020-11-27 2021-03-23 2021-01-01 2021-03-29 2021-06-30 Baseline in selected buildings efficiency improvements in Selection public buildings Component 2 Demonstrating IDA-HSIP-CQ-2020-5 / Consultant the benefits of energy Public awareness campaign on IDA / D2400 Post Qualification Open - National 100,000.00 66,400.11 Signed 2020-08-24 2021-03-09 2020-09-14 2021-04-02 2020-10-28 2021-06-21 2020-11-27 2021-08-26 2021-01-01 2021-08-26 2021-06-30 efficiency improvements in energy efficiency Selection public buildings IDA-HSIP-CQS-2021-1 / Component 2 Demonstrating Second batch: Detailed Consultant the benefits of energy Designs for Improved Energy IDA / D2400 Post Qualification Open - National 250,000.00 147,067.92 Signed 2021-04-23 2021-05-21 2021-05-14 2021-05-21 2021-06-27 2021-07-23 2021-07-27 2021-09-09 2021-08-31 2021-09-29 2022-02-27 efficiency improvements in Efficiency and Seismic Safety Selection public buildings and Author supervision SECO-HSIP-CQS-2021-2 / Component 2 Demonstrating Second batch: Construction Consultant the benefits of energy Under Supervision of Implementation IDA / D2400 Post Qualification Open - National 150,000.00 0.00 2021-06-22 2021-11-04 2021-07-13 2021-12-03 2021-08-26 2021-09-25 2021-10-30 2022-04-28 efficiency improvements in Implementation of Energy Efficiency and Selection public buildings Seismic Safety Measures Component 2 Demonstrating ARIS-AUDIT-LCS-2021-1 / the benefits of energy Least Cost Under IDA / D2400 Post Open - International 100,000.00 0.00 2021-08-06 2021-08-23 2021-08-27 2021-09-24 2021-10-10 2021-11-07 2021-12-07 2022-01-11 2022-02-15 2022-08-14 Project Audit efficiency improvements in Selection Implementation public buildings SECO-HSIP-CQS-2021-1 / Component 2 Demonstrating Consultant Third batch: Detailed seismic the benefits of energy Under IDA / D2400 Post Qualification Open - National 270,000.00 0.00 2021-09-15 2021-09-14 2021-10-06 2021-10-01 2021-11-19 2021-12-19 2022-01-23 2022-07-22 safety and energy efficiency efficiency improvements in Implementation Selection assessments public buildings INDIVIDUAL CONSULTANTS Activity Reference No. / Invitation to Loan / Credit Contract Type Estimated Actual Amount Draft Negotiated Description Component Review Type Method Market Approach Process Status Terms of Reference Identified/Selected Signed Contract Contract Completion No. Amount (US$) (US$) Contract Consultant Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Component 3: Demonstrating IDA-HSIP-IC-2019-4 / Individual the benefits of energy Pending Safeguard Specialist (part- IDA / D2400 Post Consultant Open 59,304.00 0.00 2019-10-25 2019-12-13 2020-01-03 2020-02-07 2020-08-05 efficiency improvements in Implementation time) Selection public buildings Component 3: Demonstrating Individual IDA-HSIP-IC-2020-1 / the benefits of energy IDA / D2400 Post Consultant Open 75,856.00 15,474.14 Signed 2020-06-15 2020-06-24 2020-08-03 2020-08-13 2020-08-24 2020-08-27 2020-09-28 2020-09-01 2021-03-27 Energy Efficiency Engineer efficiency improvements in Selection public buildings Component 2 Demonstrating IDA-HSIP-SSS-2021-1 / First the benefits of energy Under IDA / D2400 Post Direct Selection Direct 15,000.00 0.00 2021-04-10 2021-04-12 2021-04-18 2021-06-22 2021-12-19 batch: Author supervision efficiency improvements in Implementation public buildings Page 2