REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE ZANZIBAR ENERGY SECTOR TRANSFORMATION PROJECT PROJECT PROCUREMENT STRATEGY FOR DEVELOPMENT Version 3 October 2021 OBJECTIVES OF THE PPSD PPSD has been prepared to understand the market, implementation pace aligned with project period, procurement risks and sets out the selection methods and market approaches to be followed by the borrower during project implementation in the procurement of Goods, Works, Non-consulting and Consulting Services financed under the ZESTA Project. The PPSD describes the overall project operational context, market situations, IAs’ procurement capacity to articulate project procurement activities, and identifies possible procurement risks. ii TABLE OF CONTENTS 1. Project Overview ....................................................................................1 1.1 Project Description ...........................................................................1 1.2 Project Development Objectives: .....................................................9 1.3 Project Level Results Indicators: ......................................................9 1.4: Proposed Procurement Contracts Supply Positioning.......................9 2. Strategic Assessment of Operating Context and Borrower Capability .10 2.1 Operational Context .......................................................................10 2.1.1 Governance Aspects ......................................................................10 The procurement regime has been undergoing transformation with the ...12 2.1.2 Economic Aspects ..........................................................................12 2.1.3 Technological Aspects....................................................................15 2.1.4 Sustainability Aspects ....................................................................15 2.1.5 Conclusions on Operational Context to be addressed through the Procurement Approach: .................................................................16 2.2 Capacity Assessment of the Implementing Agencies.....................18 2.2.1 Procurement capacity and experience in implementing similar projects ..........................................................................................18 2.2.2 Contract Management Capability and Capacity .............................18 2.2.3 Complaints Management ...............................................................18 2.2.4 Conclusions on Borrowers Capacity to be addressed through the Procurement Approach ..................................................................20 2.3 Market Research and Analysis .............................................................21 2.3.1 Supply Positioning Model ...............................................................21 2.3.2 Market Complexity and Competitiveness.......................................21 2.3.3 Financial Situations ........................................................................21 2.3.4 Procurement Trend ........................................................................22 2.3.5 Key Conclusions .............................................................................22 3. Procurement Risk Analysis ...................................................................22 4. Procurement Objectives .......................................................................25 5. Recommended Procurement Approach for the Project ........................25 6. Preferred Arrangement for Low Value, Low Risk Activities:..................28 7. Summary of PPSD to Inform the Bank’s Preparation of the PAD ..........29 iii Acronyms BESS Battery Energy Storage System COVID -19 Corona virus Disease CTF Clean Technology Fund DP Development Partner EHS Environmental Health and Safety EMA The Environment Management Act EMP Electrification Master Plan ESHS Environmental, Social, Health and Safety ESIA Environmental and Social Impact Assessment EU European Union FM Financial Management GBV Gender-based Violence GDP Gross Domestic Product GoT Government of Tanzania GPN Good Procurement Notice IA Implementing Agency IDA International Development Association IFC International Finance Corporation IPP Independent Power Producer kV Kilo Volt LC Letter of Credit M&E Monitoring and Evaluation MoWEMM Ministry of Water, Energy and Minerals NGO Nongovernmental Organization NOCP National Open Competitive Procurement NORAD Norwegian Agency for Development Cooperation OHS Occupational Health and Safety OM Operational Manual PAD Project Appraisal Document PAPs Project Affected Person PDE Procuring and Disposal Entity PDO Project Development Objective POFP President Office Finance and Planning PPDPAA Public Procurement and Disposal of Public Assets Authority PPSD Project Procurement Strategy for Development PSMP Power System Master Plan iv PV Photovoltaic QCBS Quality Cost Based Selection RFB Request for Bid – Open International / Open National RFP Request for Proposal RFQ Request for Quotation RRGoZ Revolutionary Government of Zanzibar RPF Resettlement Policy Framework SBDs Standard Bidding Documents SCADA Supervisory Control and Data Acquisition SEA Sexual Exploitation and Abuse SIDA The Swedish International Development Cooperation Agency STEP Systematic Tracking of Exchanges in Procurement TA Technical Assistants TANePS Tanzania National Electronic Procurement System TBD To be Determined TNA Training Needs Assessment TZS Tanzanian Shillings USD United States Dollars VAC Violence Against Children VfM Value for Money WB World Bank ZAECA Zanzibar Anticorruption and Economic Crimes Authority ZAWA Zanzibar Water Authority ZECO Zanzibar Electricity Corporation ZEMA Zanzibar Environment Management Authority ZESTA Zanzibar Energy Sector Transformation Project ZIPA Zanzibar Investment Promotion Authority ZPPDPAA Zanzibar Public Procurement and Disposal of Public Assets Authority ZURA Zanzibar Utilities Regulatory Authority ZUSP Zanzibar Urban Services Project v 1. Project Overview Country: Tanzania Full Project The Zanzibar Energy Sector Transformation and Name: Access Project (ZESTA) Total Finance 142 million (USD): Project Number: P169561 1.1 Project Description The ZESTA will support the transformation of the Zanzibar energy sector by enabling the first private sector financed grid-scale renewable energy power plant, thereby accelerating efforts toward universal electricity access in Zanzibar. The project will also facilitate the transition of ZECO from a distribution utility to one managing a complex system with an integrated variable renewable energy and Battery Energy Storage System (BESS), and a grid-wide Supervisory Control and Data Acquisition (SCADA) system. The project’s design builds on foundations laid by other development partners and closely aligns with ongoing support and initiatives in the energy sector and related sectors. The project is financed through an IDA credit of US$117 million equivalent, a Clean Technology Fund (CTF) loan of US$22 million, and a CTF grant of US$3 million.. The estimated investment for the Renewable Energy and Storage infrastructure Development cost USD 36.5 Million, Grid modernization and access scale up amounting USD 86 Million and Sector Strengthening and Project Implementation cost USD 14 Million and unallocated cost USD 5.5 Million. This investment also includes VAT on imported goods, machinery, equipment and material costs and the related Plant Supply and Installation contract costs for the entire project. Below are the details of each component. 6 Component 1: Renewable Energy and Storage Infrastructure. This component will finance a solar park with a 18 MW solar PV plant and a stand- alone Battery Energy Storage System (BESS). The solar PV plant will pilot utility-scale renewable energy development in Zanzibar, and the BESS will support the grid by providing supply needed to meet the evening peak and integrate VRE onto the island grid. In addition, this component will also support the technical design and supervision consultancy for the Solar PV and BESS. The consultancy will undertake feasibility studies, associated E&S studies, develop procurement documents, and supervise the construction. The total estimated cost for this component is USD 36.5 million. Sub-component 1.1 (BESS for grid support) will support the design, installation and operation of a centralized publicly owned battery energy storage system (BESS). The BESS will be connected to the ZECO grid at one of the existing or planned 132kV substations. The ongoing grid optimization study has identified the feasibility of up to 40MWh of battery storage, as a part of the least cost supply expansion. The estimated cost of BESS is USD 17 Million. Detailed specifications, sizing and location, and O&M arrangements will be finalized during project implementation. The BESS will provide multiple benefits to the Zanzibar grid, shaving the evening peak demand, managing the variability of solar PV, and allowing greater future integration of variable renewable energy (VRE). The batteries would have two main use cases: (i) help store electricity produced by the solar PV during the day and supply to the evening peak; and (ii) compensate for the fluctuations inherent to solar power generation. This would allow a deferral of transmission investments such as an additional submarine cable from the mainland and the need to run diesel generators to serve the evening peak demand. The BESS will also reduce the impact of variable generation from the Solar PV plant on the TANESCO system, as in the absence of the BESS, TANESCO would need to provide balancing support through the submarine cable. 7 This sub-component will also support the necessary technical consultancies for the BESS, including engineering design, necessary environmental and social safeguard documents, procurement, and construction supervision. The support will include detailed designs and minimum functional specifications for stand-alone BESS to provide grid support, appropriate advice for procurement, and operation and maintenance (O&M) mechanisms and rules for normal system operation and island operation. A fit-for-purpose O&M arrangement will be designed for the BESS and financed during the project based on industry best practices to ensure operational sustainability. ZECO has no prior experience with BESS, thus, to ensure sustainability of the BESS investment, different O&M arrangements will be explored to ensure that the BESS functions as intended, and that there is enough capacity building to equip ZECO with necessary skills to effectively perform the routine O&M after the end of the O&M contract. A phased O&M contract, with an initial duration of 2years will be considered, to allow flexibility for potential technology cost reduction during the project implementation period, and to avoid the risk of client disengagement once long-term contract is in place. Based on recent industry experience, a range of O&M will be evaluated, including, (i) a capacity maintenance agreement (CMA), where a private sector provider would be contractually obligated to maintain the BESS capacity (MWh) for a certain duration while the conventional O&M is undertaken by ZECO, (ii) a conventional O&M agreement with a private operator which will operate and maintain the BESS for a contracted duration, and (iii) a service contract through which certain services, including maintenance, are outsourced to a private provider whereas the utility, ZECO, retains general control and operation of the BESS. To ensure sustainability of BESS operations, the RGoZ will establish an appropriate mechanism to ensure financing for the O&M after the project close, including regular contributions by 8 ZECO into an escrow account dedicated for financing contractual O&M expenses after project close. Sub-component 1.2 (solar PV park with a 18 MW solar PV power plant).This component will enable investment in a 18 MW solar PV power plant in Unguja, estimated to require USD 16.5 million. The solar PV is expected to be procured competitively with the support of a reputable transaction advisor to be hired by RGoZ. The transaction advisor will support the design and execution of the Solar PV procurement which will be under the Engineering Procurement Contractor (Plant Supply And Installation) systm. The RGoZ has already engaged IFC Advisory, under a “phase zero” mandate, to carry out legal, commercial and technical due diligence. The due diligence includes an assessment of the relevant legal frameworks as it applies to the procurement of and support to the Plant Supply And Installation, a market sounding of a relevant sample of developers, lenders and credit enhancement providers, and a preliminary technical and sector analysis to ascertain drivers and challenges to a successful renewable auction in Zanzibar. The location, sizing, and configuration of the Solar PV will be informed by the recommendations of the technical analysis under the VRE Grid Integration study, and further due diligence that will be conducted during project implementation, including a climate risks assessment of the solar PV plant site selection. From climate mitigation perspective, enabling the solar PV generation development will allow Zanzibar to avoid the use of fossil-fuel generation plant for peak demand, which will reduce 507,860.2 tCO2e of greenhouse gas emissions (GHG) in 20 years of the solar plant life. Sub-component 1.3 (Implementation support consultancy-BESS Solar PV+TA include renewable energy scale up). The estimated cost for this component USD 3 million. Assistance for Renewable Energy Development) - will provide technical assistance support to the RGoZ for the development of renewable energy in Zanzibar. The technical assistance component will include consultancy services to support the 9 development, design and implementation of renewable energy projects in Zanzibar. This sub-component will also support any just-in-time technical studies that may be needed to fill any gaps remaining in technical, environmental and social, legal and commercial due diligence. Component 2 (Grid modernisation and access scale up) This component will support the implementation of the ZECO Electrification Master Plan (EMP) by financing the priority grid modernization investments, including last mile electricity connections. The grid investments will increase the ability of the grid to accommodate a higher penetration of VRE power generation, evacuate more power from any given location, improve quality and reliability of power supply, and to expand on-grid electricity access to previously unserved and vulnerable households, thus increasing the resilience of households to climate risks such as flooding and pandemics such as COVID-19. The total estimated cost for this component is USD 86 million. Sub-component 2.1 (New Transmission Backbone Infrastructure) - will finance the construction of the 132kV high voltage (HV) transmission backbone infrastructure in Unguja to meet the growing power demand in the northern and southern parts of the island, evacuate power from the proposed solar PV Plant Supply And Installation power plant, and to enable greater future integration of renewable energy generation onto the grid. The cost of this subcomponent is estimated to USD 44 million.Without the HV transmission infrastructure, the existing network would not have sufficient capacity to evacuate power from a 18 MW and above MW solar PV power plant. The HV transmission infrastructure will enable Zanzibar to scale-up development and integration of renewable energy generation on to the grid and thus better harness domestic renewable energy resources. The proposed 132kV transmission infrastructure will also help to: (i) improve power supply quality and reliability across Unguja, and (ii) reduce overall technical losses by transmitting power through a higher capacity transmission 10 line, as opposed to using the existing overextended and overloaded 33kV distribution feeders. This north-south HV transmission infrastructure is proposed to run from Matemwe (north) to Makunduchi (south) as follows: (a) approximately 100km of 132kV double circuit transmission line from Matemwe to Makunduchi; (b) The construction of new 132kv single ciruit transmission line on double ciruit towers from welezo 132kv station to makunduchi 132/33kv substation with total length about 58km (c) The construction of new 132kv single circuit transmission line on double circuit towers from welezo 132kv station to matemwe 132/33kv substation with total length about 46km (d) construction of 132kV switching station at Welezo, between Fumba submarine cable landing station and Mtoni 132KV substation to connect the proposed 132kV backbone transmission infrastructure to the existing grid; (d) construction of a 132/33kV substation with two 60 MVA transformers at Matemwe; and (e) construction of 132/33kV substation with two 60 MVA transformers at Makunduchi. This subcomponent will also finance short interconnections from the new substations at Matemwe and Makunduchi to the nearest feasible connection points on the existing 33kV network currently supplying power in these areas. This will ensure that the transmission line is connected to existing distribution infrastructure in a timely manner to expedite the accrual of benefits (increased availability and reliability of electricity) to end-consumers in the project areas. Additionally, the design and construction of the substations at Matemwe and Makunduchi will provide enough capacity and spare 33kV feeder panels to allow future distribution network expansion (rural electrification) and access scale up programs. This subcomponent will also finance the consultancy services required to support ZECO with the review of detailed project designs, procurement of works contracts, and construction supervision of the HV 11 backbone transmission infrastructure works, including expertise transfer and training for ZECO staff and supervision and monitoring of the implementation of safeguards instruments. In addition, the climate disaster risk screening of the proposed project shows a likely increase in the frequency of flooding that can compromise support structures (tower and pole foundations) for the transmission and distribution networks leading to unnecessary outrages and shorten the lifetime of the investments. Therefore, climate risk measures will be incorporated in the design of the HV transmission infrastructure to ensure climate resilience. This sub-component will be implemented by ZECO. Sub-component 2.2 (Distribution network modernization and access scale-up) will finance the extension, upgrade, and strengthening of the distribution grid to improve quality of supply, reduce technical losses, improve supply reliability, and electricity access expansion. Increased electricity access for households will reduce the use of traditional lighting fuels such as diesel, candles, and kerosene, thus reducing GHG emissions and negative health impacts from indoor air pollution implying greater resilience to climate related shocks, including infectious diseases and extreme weather events. The cost of this subcomponent estimated to USD 32 million. Specific investments will be designed based on the detailed network studies that will be carried out during the implementation phase of the project. The expected investments under this sub-component include (i) refurbishment and reconfiguration of the existing 33/11kV substations; (ii) modernization/replacement of obsolete 11kV equipment around Stone Town; (iii) advance metering infrastructure (AMI), including support for ongoing automated meter readers (AMR) roll-out, and (iv) grid extension, intensification, and last-mile household connections. Together with the HV transmission infrastructure investments, the 12 distribution network modernization and refurbishment will help reduce technical losses and reduce power outages. The sub-component will support the implementation of the new Energy Policy of the RGoZ, specifically in relation to addressing the affordability barriers to electricity access. The Energy Policy identifies a need for a well-designed and targeted subsidy program to alleviate the affordability barrier to electricity access. The recommends a special focus on women regarding new connections. In this context, this sub-component will support last-mile household access expansion to help the RGoZ advance towards meeting its target of universal access by 2032. The sub-component will finance the procurement of all necessary materials for electricity connections to at least 70,000 households including, where necessary, any required grid extension and intensification works. The gird extension and intensification works, including household connections will be undertaken by contractors hired by ZECO and paid under the project. In cases where connections are made under the existing gird, ZECO technicians will be responsible for making the connections, with the costs incurred recovered from the project proceeds. This will address one of the main affordability barriers to increasing access to electricity. This sub-component will also support ZECO’s ongoing efforts to reduce commercial losses and improve operational efficiency, through the retrofitting of automated meter reading (AMR) devise for 100 large customers. This support will fill in the funding gap identified under an ongoing AMR retrofit program that is financed bySIDA. This will enable remote interrogation of the meters and real time data collection and analysis to understand the demand patterns of ZECO’s large customers and help minimize commercial losses. To enhance ZECO’s implementation and supervision capacity, the sub- component will also finance all the consultancy services required for the design, preparation of bid documents, procurement support, and 13 construction supervision of the distribution network refurbishment, extension, and intensification works and to support the rollout, including any required outreach programs, for the effective implementation of access scale up activities. Sex disaggregated data will be collected and reported to ensure equitable participation of women, female headed households and disadvantaged groups. Sub-component 2.3 (Installation of SCADA system, including Control Centre)- will finance the design, supply and installation, testing and commissioning of the SCADA/EMS (Energy Management System) network management system for Zanzibar power system to enhance ZECO’s oversight of the network operations for improved network management capability. The expected benefits of the SCADA/EMS system include increased reliability and integration of high proportion of VRE power generation, reduced operational costs, increased employee safety, data collection and analysis to aid decision making, increased utilization of existing network investments, faster identification and restoration of outages, and increased customer satisfaction. The SCADA/EMS system will also strengthen ZECO’s capability to control and manage the integration and dispatch of the VRE power generating plants such as solar PV and wind. The estimated cost for this sub component is USD 10 million. The proposed investments under this subcomponent will cover all the necessary hardware and software for the SCADA/EMS; all the required communication infrastructure; construction of a control center that is fully equipped with the necessary equipment to provide the requisite monitoring and control of the network. The SCADA/EMS will be equipped with the necessary data protection facilities to protect it from the threat of unauthorised external access and cybercrime. This sub-component will also finance the design, preparation of bid documents, evaluation of bidding document for suppliers/contractors, construction supervision of the entire scope of SCADA/EMS system, 14 including supervision and monitoring of the implementation of safeguards instruments. This sub component will be implemented by ZECO. Subcomponent 2.4 (Resettlement and project related litigations) - will fund land acquisition and compensation payments to project affected persons (PAPs). The project supports the construction of various infrastructure investments that will require acquisition of land transmission line right-of-way and compensation payments. These are necessary to ensure compliance with the Bank‘s ESF requirements and for the project to timely achieve its development objective. The total estimated cost for this sub component is USD 3million. Component 3. (Sector strengthening and project implementation support).This component will support project implementation, capacity strengthening of sector institutions, including ZECO, MoWEM, ZAWA and ZURA, support for design and implementation of key planning, strategy and regulatory frameworks, including those on energy efficiency and gender. The estimated cost for this component is USD 14 million. Subcomponent 3.1 (Institutional strengthen and project management for ZECO). The component will support the strengthening of its technical, operational and project implementation capacity. Further it will support the establishment of a dedicated Project Implementation Unit with requisite technical, fiduciary, and social and environmental safeguards skills. And finally it will support the building of capacity of ZECO to manage and operate the systems efficiently having regard to the increased system complexity through the introduction of solar PV and BESS. The estimated cost for this subcomponent is USD 5 million Subcomponent 3.2 (Sector strengthens and project management MoWEM +RE Scale up). will support sector institutional strengthening and the development of necessary planning and strategic frameworks. 15 Relevant sector agencies will lead technical aspects of the studies and activities supported under this sub-component. The estimated cost of this component is USD 5million. The MoWEM, through its Department of Energy and Minerals (DoEM) will be supported in the implementation of key areas of the new Energy Policy. This would include formulating a power system master plan for the optimal expansion of the power system to ensure the optimal expansion of reliable and climate-resilient electricity supply; strengthening its policy making and coordination role; and undertaking an institutional and skills assessment to identify key gaps in sector agencies and develop a strategy to address the gaps in the short to medium term. MoWEM will be supported in the design and implementation of the targeted reduction in connection fees for residential customers, including the necessary analysis, policy formulation and regulation. And ZURA will be supported in strengthening its regulatory capacity of the electricity sector, including tariff setting and analysis. Support will be provided for an update of the cost of service study (CoSS) to account for anticipated grid investments, including renewable and BESS investments; an assessment of time-of-use tariffs (peak-load pricing) for large customers with AMR meters to incentivize a reduction in peak time electricity demand, regulatory capacity building through relevant training, knowledge exchange and the possible support of embedded technical advisors to train, mentor, and coach the relatively young staff at ZURA. Through this sub-component an assessment will be undertaken of the impact of the COVID-19 pandemic on the electricity sector and associated public service delivery, especially the health and education sectors. The assessment will inform the RGoZ on the required short-term and medium-term measures required to support the recovery of the sector through improved resilience of systems, including reliable power 16 supply, basic Information and Communication Technology (ICT) connectivity infrastructure, etc. Subcomponent 3.3 (Energy Efficiency Improvements) - will support the MoWEM in formulating an Energy Efficiency Masterplan and Roadmap as per the new Energy Policy. The sub-component will also provide technical assistance to support the implementation of priority areas identified under the masterplan and roadmap, focusing on key sectors including residential, government, hotel and water sectors. The technical assistance will support the development of necessary regulatory frameworks, and the design and implementation of programs such as an energy efficient product rating system, bulk procurement, targeted incentive schemes for the poor and vulnerable to facilitate their access to energy efficient electricity services, and building energy audits. The total estimated cost for this sub component is USD 3million. This sub-component will also support a diagnostic study, specifically focused on the feasibility of energy efficiency improvements in water pumping and distribution for ZAWA. The diagnostic will help identify priority investments based on their potential to bring cost-effective energy savings. Based on this, support for equipment purchase and installation such as energy meters, variable speed drives (VSD) and supporting technologies such as flow sensor equipment, pressure gauges and communication devices/timer relays to better measure, monitor and match supply and demand. Any energy efficiency interventions at ZAWA will be developed in the broader context of efficient utility operations, as without this the installation of equipment will not lead to sustained improvement in energy and operational efficiency. Subcomponent 3.4 (Closing the gender gap in the energy sector)- will support the DoEM to develop a Gender Action Plan with roadmap for implementing women employment program for the sector with the objective of promoting gender equality by increasing employment and 17 career advancement opportunities for women. Informed by the gender gap assessment (GGA) that has been carried out, a five-year gender work program will be implemented for sector agencies. The total estimated cost for this sub component is USD 1million. Based on the stakeholder consultations and the GGA, the women employment program will comprise a) an internship program (pre-service capacity development program), and, b) in-service capacity development program for existing female employees. The internship program will focus on female STEM graduating female students and it will be implemented through partnership with higher education institutions and universities like the Karume Institute of Science and Technology (KIST). In-service capacity development program for women employees at various levels of seniority (through coaching, mentoring, and short term on job trainings) will be designed to enhance technical and leadership skills, identify and address barriers to career advancement, and improve opportunities for career advancement. It will support any necessary strengthening of HR and Recruitment policies and guidelines to remove gender disparities in hiring and career advancement. In addition, awareness and capacity development trainings and workshops to promote buy-in from senior management will be conducted to ensure continued consensus and commitment to interventions and targets. The Project components are summarized in Table 1 below. Table 1: ZESTA Project Investment Plan Project Activities IDA CTF allocatio allocatio n n ($ ($ millions) millions) COMPONENT 1: Enabling support for 16.5 20 solar PV development and BESS • 1.1 Stand-alone BESS for grid support • 1.2 Solar PV 18 • 1.3 Implementation support consultant COMPONENT 2: Grid modernization and 86 access scale-up • 2.1 New HV Transmission Backbone Infrastructure • 2.2 Distribution network modernization and access scale-up • 2.3 Installation of SCADA system, including Control Centre • 2.4 Resettlement and project related mitigations COMPONENT 3: Sector Institutional 13 1 Strengthening and Project Implementation Support • 3.1 Institutional strengthening and project management for ZECO 3.2 Institutional strengthening and project management for ZECO • 3.3 Energy Efficiency Improvements • 3.4 Closing the gender gap in the energy sector Unallocated 1.5 4 TOTAL 117 25 1.2 Project Development Objectives: The Project development objective is to expand access to reliable and efficient electricity services and to scale up renewable energy generation in Zanzibar 1.3 Project Level Results Indicators: The proposed key results indicators are the following: (i) People with access to electricity (number); (ii) Reduction in system outages (number or month); (iii) BESS installed for grid support ( MWh) (iv) Capacity of solar PV generation enabled by the project (MW) 19 (v) Reduction in technical losses (percentage); and (vi) Direct project beneficiaries (number), of which female (percentage) 2. Strategic Assessment of Operating Context and Borrower Capability 2.1 Operational Context The aimof operational context is to bring into line the procurement approaches which will be used in the project within the market sphere, since the procurement process is undertaken within the environment. By analysing an environment, it will enable to take into considerations impacting factors that may crash the procurement implementation. The operational context shall use PESTLE (Political- Economic-Social-Technological-Legal and Environment) tools for Analysis. 2.1.1 Governance Aspects Zanzibar as a semi-autonomous region of the United Republic of Tanzania is politically, socially and economically stable. Being part of Tanzania, no separate data is kept for Zanzibar with respect to its performance as a country with respect to ease of doing business and corruption perception index. However, data for Tanzania is also reflective of the situation in Zanzibar and is therefore used for discussion under this section. In 2019 Tanzania was ranked 141 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings1. The rank of Tanzania improved to 141 in 2019 from 144 in 2018. The data from 2010 to date are shown in Figure 1. Despite the improvement, this is an area of concern. Compared to other East African Countries, using 2019 figures, Tanzania is lagging behind Rwanda (38), Kenya (56), and Uganda (116). 1https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual- Reports/English/DB2019-report_web-version.pdf 20 Figure 1: Easy of Doing Business Tanzania was positioned at 117 amongst 141 countries in Competitive index in 2019 behind Kenya at 93rdposition, Rwanda at 100th position and Uganda at 115th position. The rankings are not so much different in the previous year- 2018- in which Tanzania was at 117 positions out of 140 countries. Kenya was at 93rd position, Rwanda at 100th position and Uganda at 117th position2. More efforts need to be taken by the RGoZ through the Zanzibar Investment Promotion Authority (ZIPA) towards improving investment climate in Zanzibar particularly with respect to the Zanzibar Energy Sector Transformation and Access Project (ZESTA) in which the involvement of the private sector through IPPs is envisaged for scale up. With respect to corruption, there has been some improvement in Tanzania’s Corruption Perception Index as shown in Figure 2. This is an area where Tanzania is seen to be doing better than most of its East African neighbours. Transparency International’s corruption index placed the country at position 96, 99 and 103 out of 180 countries in 2019, 2018 and 2017 rankings respectively. Despite its good positioning in the East Africa Region, Tanzania and in particular RGoZ need to further step up its efforts to curb corruption particularly in procurement and contract management so as to ensure its efforts to invest in the energy sector are not negated by corruption. 2 The World Economic Forum, The Global Competitiveness Report 2019. 21 Separate data for corruption index for Zanzibar is not available. However, reports obtained from the Zanzibar Anti-Corruption and Economic Crimes Authority (ZAECA), shows that corruption in procurement and contract management is not a very serious problem. Of all cases of corruption reported to ZAECA for 2019, only 2.6% related to procurement and contract management3. Efforts made through ZAECA need to be intensified particularly the procurement of the IPPs given some challenges that were previously experienced of lack of transparency in the procurement of IPPs across the sub-Saharan Africa.4 Figure 2: Corruption Perception Index for the East African Countries5 The procurement regime has been undergoing transformation with the repeal of the Public Procurement and Disposal of Public Assets Act (PPDPAA) No 9 of 2005 and the re-enactment of PPDPAA No. 11 of 2016. The PPDPAA establishes the Public Procurement and Disposal of Public Assets Authority (ZPPDA) as an autonomous vested with oversight powers and responsibilities to regulate all public procurement and disposal activities carried out by all 3 Ripoti ya Hali Halisi ya Rushwa na Uhujumu wa Uchumi Zanzibar ya Mwaka 2019 – Jedwali la Kwanza ( Report on the Situation of Corruption and Economic Crimes for Zanzibar for year 2019- Table 1), issued by ZEACA February 2020 4 IPPs in Sub-Saharan Africa: determinants of success by Anton Eberhard and Katharine Nawal Gratwick downloaded from https://library.pppknowledgelab.org/documents/2244/download 5Source https://www.transparency.org/cpi2019 22 public bodies in Zanzibar. While it is allowed to use national procedures under the National Open Competitive Procurement (NOCP), apart from the Act a visit in the https://www.zppda.go.tz shows that most of the guidelines to guide procurement under NOCP are not yet developed. The procurements under NOCP may therefore, out of necessity, be carried out using the Bank’s procedures. 2.1.2 Economic Aspects The population of Zanzibar as recorded in 2012 Tanzania Population and Housing Census (2012 TPHC) was 1,303,569; growing at a rate of 2.8 percent per annum6. This growth rate puts pressure in the provision of services including electricity. Zanzibar’s annual GDP growth rates at 2015 market prices for the period 2013 to 2018 are shown in Figure 3 in which a comparison with Tanzania mainland is shown. The results show that GDP in real terms in Zanzibar grew by 7.0 percent in 2019 compared to 7.1 recorded in 2018. The highest growth rate of 7.7 percent was recorded in 2017 while the lowest growth rate of 4.3 percent was recorded in 2013. Compared to Tanzania Mainland, Zanzibar’s GDP has been experiencing a fluctuating trend. However, the growth in GDP is likely to be hampered the ongoing COVID-19 pandemic. 6Page 15 of Zanzibar Statistical Abstract 2019 issued by the Office of the Chief Government Statistician Zanzibar 23 Figure 3: Comparison of GDP Growth Rate for Zanzibar and Tanzania Mainland7 Figure 4 shows a declining trend of the contribution of construction in the GDP from year 2017. On the other hand, there has been small increase of the contribution of oil and electricity from year 2018 to 2019. The low contribution of electricity and gas to the GDP could be attributed to low investment in electricity generation, transmission and distribution in Zanzibar, which is an aspect that this project wishes to address. 7Figure F.1.1, Page 82 of Zanzibar Statistical Abstract 2019 issued by the Office of the Chief Government Statistician Zanzibar AND https://www.nbs.go.tz/nbs/takwimu/na/National_Accounts_Statistics_of_Tanzania_ Mainland_2018.pdf 24 Figure 4: Contribution of Construction, and Electricity and Gas Sectors to the GDP8 Both the Zanzibar and Tanzania Mainland governments have been successful in controlling the inflation through the implementation of prudent monetary policies. For Zanzibar this is demonstrated through recorded inflation rates of 5.7%, 6.7%, 5.6%, 3.9% and 2.7% for years 2015, 2016, 2017, 2018 and 2019 respectively. Figure 5 shows the inflation trend of Zanzibar as compared with the Tanzania Mainland. 8Table F.1.4, Page 86 of Zanzibar Statistical Abstract 2019 issued by the Office of the Chief Government Statistician Zanzibar. 25 Figure 5: Inflation Trend in Zanzibar as Compared to Tanzania Mainland9 The trend for the exchange rates between 2015 to 2019 for Tanzania both Zanzibar and Mainland, as shown in Table 2; were reasonably stable with little fluctuation in the last two years, 2018 and 2019. This is despite of the fact that in 2018 the government of Tanzania, both Mainland and Zanzibar, moved in to close most of the bureaux de change in the country, a move which enabled the commercial banks to move in to fill in the gap. Table 2: Tanzanian Shilling to USD Exchange Rate Date Exchange Rate in TZS per USD 30th Dec 2019 2,229.91 31st Dec 2018 2,292.55 29th Dec 2017 2,297.24 30th Dec 2016 2,186.21 30th Dec 2015 2,159.21 2.1.3 Technological Aspects Currently, the power supply of Zanzibar is 100% dependent on supply from Tanzania mainland. About 50% of the population in Zanzibar is connected to the National Grid. Electricity demand in Unguja is growing very rapidly at an average of about eight percent (8%) per year between 2014 and 2018. In 2018, electricity consumption was 371 GWh, implying a per capita consumption of about 285 kWh which was more than double that of 2009. The grid infrastructure covers about 82 percent of the population but over 30 percent of the population lives “under the grid” without access to electricity. This represents the underutilization of existing infrastructure. The charge for connection to the grid is a significant barrier to increasing access, even where the electricity grid is available. Another challenge associated with 9 Table F.3.3, Page 86 of Zanzibar Statistical Abstract 2019 issued by the Office of the Chief Government Statistician Zanzibar AND https://www.nbs.go.tz/index.php/en/consumer-price- index-cpi/464-annual-headline-inflation-rates-for-some-neighbouring-countries-october-2019 26 electricity in Zanzibar is frequent power outages. Recorded unplanned power outages were 93 and 54 per month on Unguja and Pemba respectively. Both planned and unplanned last for an average of total 75.8 hours per month. The frequent outages impose significant costs on the tourism sector and other consumers. Many must resort to expensive back-up diesel generators, which increase their cost of doing business. This project therefore provides an opportunity to address technological issues associated with availability of safe, affordable and reliable electricity in Zanzibar. In the area earmarked for the project there is efficient transport access, Internet access; mobile phone access and coverage; and therefore, opportunity for and dependency on the use of technology for Project delivery does not present a risk in this project. From the procurement perspective, the tenders are published online and the IAs have their own websites – for ZECO https://www.zeco.co.tz/index. php/en/procurement and for MoWEM https://www.majismz.go.tz -in which procurement information is disclosed, namely the Procurement Plan, tender adverts and award results With efficient internet and mobile phone access, project implementation will be more efficient because of availability of necessary platforms for sharing project information. 2.1.4 Sustainability Aspects The Zanzibar Environmental Management Act No. 3 of 2015 requires that all development projects implemented in Zanzibar be subjected to Environmental Impact Assessment (EIA) process prior to project implementation. The Zanzibar Environmental Management Authority (ZEMA) established under the Act has been entrusted with a number of functions to help safeguard the environment. ZEMA can: issue environmental certificates, 27 permits and approvals, undertake environmental monitoring, promote environmental awareness and enforce regulations and standards10. With regard to the ZESTA project, since the works contracts may involve impacts and interactions with the local community and its environment, the project’s environmental, economic, and social consideration will be emphasized. In addition to ZEMA requirements, the subprojects will also be required to meet the World Bank’s enhanced Environmental, Social, Health, and Safety (ESHS) requirements. Therefore, for all subprojects under the project, the design preparations, procurement process, and contracts implementation process will apply all the requirements with regard to ZEMA and World Bank’s ESHS requirements. The bidding documents for works and the respective contracts as well as the associated supervision consultants, will incorporate applicable clauses to ensure satisfactory environmental, social, health and safety performance of contractors. The clauses will cover four issues (1) Environment, Health and Safety (EHS); (2) Environmental and social monitoring by contractor; (3) Environmental and social liabilities, and (4) Grievance mechanism for workers. PESTLE analysis for Zanzibar with regard to the Zanzibar Energy Sector Transformation Project is summarized in Figure 6. 2.1.5 Conclusions on Operational Context to be addressed through the Procurement Approach: The conclusions from the operational context analysis are the following: 1) Long term contracts may be affected by currency fluctuations and inflation – ensure the application of price adjustment formulae as provided in the conditions of contract. 2) Awareness should be made to the staff of IAs on World Bank ESHS including SEA and SH requirements, and how to include them in the 10 http://www.minifuss.com/wp/about-us/ 28 bidding documents and on the evaluation for the same in the submitted bids by contractors. 3) Preparation of realistic cost estimates and cash projections for the project to allow for commitment of funds for the project, particularly the share from the Government; and 4) Strict enforcement of Bidders compliance with World Bank’s policy on corruption and fraudulent practices as contained in the relevant bidding documents. Figure 6– PESTLE Analysis for the ZESTA Project • Tanzania, both Mainland and Zanzibar, is one of the most POLITICAL politically stable countries in Africa. • Six General elections has been held since 1995 in which Chama cha Mapinduzi (CCM) has emerged winners in presidential and parliamentary elections. Next election is scheduled this year Oct 2020, and it is likely it will be free and fair. • High level of piece after parliamentary election of October 2020 • Intensification of the war against corruption through ZAECA The in100% • good is reliance Zanzibar of electricity generation from strategy ECONOMIC • Tanzania Mainland is challenging • High growth rate of population puts pressure in the provision of services including electricity. Very fast growth in the demand for electricity due to Control over inflation and therefore stable prices of commodities • Fast growing Government investment project including tourism sector • Poverty making it difficult for people to afford payment of SOCIAL electricity connection charges • High unemployment rate, coupled with sub-optimal of women in construction works. • Fast growing population with demand to modern better life thus pushing demand for electricity • Inability to pay electricity bill leads to use other unfriendly sources heating. • Increased access to internet, due mainly to an increase in TECHNOLO smartphone ownership; GICAL • Likely Power Shortages to be caused by overloading of the existing electricity submarine cables. • Over 30% of population living under the grid but without connection to electricity. 29 2.2 The Project Capacity Assessment on the Main Implementing Agencies Assessment of Project Implementation Entity Capacity, ZECO and MoWEM will be the implementing agency for the Project. However, ZECO will be the main implementing agency. This section identifies factors that may have an impact on either ZECO’s procurement processes or project implementation and recommended mitigation measures. 2.2.1 The ZECO Functional back ground ZECO is 100% owned by the Government through the MoWEM, which assumes a supervisory role to the Corporation. The Corporation is governed by the board of directors, appointed by the Government, who supervise the ZECO management and ensure the implementation of the Government’s policies. The development of the electricity sector in Zanzibar started in the beginning of the 20th century. In the year 1908, coal-fired generators were first installed to provide Electricity in Unguja Island. In 1954 the coal technology was abandoned and diesel Generators introduced and used until 1980, when Unguja Island was connected to the Tanzania National Grid, through a 132kV 45MW sub-marine cable, in 2013 a second Submarine cable with the capacity of 100MW was installed. Public electricity supply in Pemba Island was installed in 1958, with the Commissioning of the Tibirinzi power station. Over the years additional small generating units were installed by the Revolutionary Government of Zanzibar, in response to the growing demand. In 1985, the Government commissioned Wesha power station to replace Tibirinzi power station, with three diesel generators sets of 1.5MW each. In 2010, Pemba Island was connected to national grid via 33kV 20MW, Sub marine cable from Mnyanjani Tanga to Ras Mkumbuu Pemba. 2.2.2 ZECO Organization Structure 30 The General Manager (GM) is the Chief Executive Officer of the Corporation. The GM is the head of the Management team whose members are the heads of departments and units. The Board of Directors is answerable to the Minister responsible for Energy in Zanzibar, The Directors has overall supervisory power over the Corporation with regards to the performance of Corporation Business Plan and Budget. The Board is also responsible for ensuring ZECO comprehensive system of internal control, policies and procedures is efficiently operative. 2.2.3 ZECO Procurement Cycle. The Procurement Management Unit (PMU) is responsible to manage all procurements or disposal activities of ZECO except adjudication and the award of contracts. Being PMU is a unit, administratively it is under the GM and functionally, PMU is accountable to the Tender Board (TB) whereby its function is to receive and open bids, approves the bids documents and adjudicate the recommendations from the PMU and finally award the contracts. Through PMU ZECO uses all departments during its procurement process, starting from the need identification to the budget approval. The user department must review and makes approval of the specifications. PMU prepares annual procurement plan through the approved ZECO budget. There after the procurements are derived and approved accordingly with different authorities (Management, Board of Directors, Tender Board, Zanzibar Public Procurement Authority (ZPPA) etc), being of the availability of series of decision authority of the bids documents including the bid evaluation report which must also be submitted to the ZPPA, this creates delays in the approval and decision-making. Additionally, the number of ZECO employees who have access to bid documents, evaluations and decision making process presents risk to the protection of integrity and confidential of information. 31 2.2.1 Procurement capacity and experience in implementing similar projects The implementing system of this project is as follows; ZECO will implement Component 1, Component 2, and sub-component 3.1, while the MoWEM will implement sub-component 3.2, 3.3, and 3.4. The MoWEM will coordinate implementation on behalf of ZURA and ZAWA. MoWEM Project Implementation Unit (PIU) is headed by a Project Coordinator (PC) and ZECO Implementation Unit (IU) is headed by a dedicated Project Manager. This is the first Word Bank project being undertaken by ZECO and other sector agencies. Capacity in implementing World Bank funded projects is lacking and therefore substantial capacity building has been built into the project design and implementation. Necessary mitigation of any assessed gaps in implementation capacity has been included as a part of project support through a combination of training, capacity building, and hiring of embedded project staff/consultants. A procurement capacity assessment was carried out for ZECO in September 2019 and MoWEM in November 2019 to review the organizational structure and the adequacy of procurement staff and systems for implementing the project. The assessment revealed that: (i) staff lack training and skills in World Bank procurement procedures particularly with respect to the new Bank's Procurement Regulations; (ii) additional office equipment and facilities is required to support electronic procurement system; (iii) lack of proper system for keeping/filing of procurement records; and (iv) unreliable internet services and in addition the staff position is not stable. The mitigation measures proposed include: (i) training of staff in World Bank procurement procedures and processes and procurement data management; and (ii) provision of office equipment and reliable internet services. Procurement arrangements and proposed corrective measures to mitigate the risks are detailed under the procurement arrangements. 32 2.2.2 Contract Management Capability and Capacity Similar to Section 2.2.1 above, the absence of implementation of World Bank funded projects signifies lack of contract management capability and Capacity in the IAs. ZECO, on one hand has had some experience in handling international funded projects by the Swedish Development Fund (SIDA) on the Zanzibar Energy Sector Support (ZESS) and the other project was Capacity Building on Maintenances Project financed by NORAD. In this regard, the need of training to PMU and other participant is important. 2.2.3 Complaints Management The Public Procurement and Disposal of Public Assets Act (PPDPAA) No 11 of 2016 provided a complaint’s handling mechanisms which provides two levels for handling of procurement complaints which are; the head of Procuring Entity (PE) and the ZPPDPA. The complaints system is summarized in Figure 7. It is a three tier system in which a bidder, if not satisfied with the procurement process can submit his complaint to the Accounting officer who is required to suspend the procurement proceeding, conduct investigations and deliver a decision in 15 days. Next level is the ZPPPDA and finally the Court of Competent jurisdiction. The Annex-III (Procurement Related Complaints) of Bank’s Procurement Regulations will be used to redress the complaint received on Bank’s funded activities. The complaints will be reviewed and processed according to the timelines and roles and responsibilities of ZECO, Bidders, and Bank defined in the Annex-III of Bank’s Procurement Regulations. 33 Figure 7: Bidder’s Complaint System as provided in the PPDPAA The PPDPAA provides for a judicial review in case the second level fails to make a decision within the prescribed time limit. The system generally provides fairness to participating bidders with exception to a situation where a matter needs to be referred to a court of competent jurisdiction, in which a bidder is required to secure a bank guarantee which is 50% of the bid price – this is a serious disincentive for bidders wishing to pursue their rights. However, the country’s procurement complaints review system will not affect the project as the procurement-related complaints under the program shall be handled in accordance with paragraphs 3.26-3.31 of the Procurement Regulations. Specifically, the following should be followed: a) Complaints arising from national procurement procedures when approaching national market may be handled in accordance with the Borrower’s national procurement complaints review procedures, as provided for in the ZPPDPAA. However, for contracts following national 34 procurement procedures which are identified to be prior reviewed by the Bank, paragraphs 3.2 to 3.5 of the Annex III of the Procurement Regulations shall also apply. b) Complaints arising under contracts where Bank SPDs are required will be handled in accordance with Annex III of the Procurement Regulations, which govern the handling of complaints related to contracts where Bank’s SPDs are required to be used, or where no SPDs exist, documents and conditions of contract acceptable to the Bank. The SWOT Analysis on Borrowers Capacity is shown in Figure 8. STRENGTHS CHALLENGES • There is good team spirit and a • There is a skills gap in monitoring and learning project team in both IAs. assuring the quality of the works and the services of the Consultants; • The ownership of the asset: the government own core assets which • Procurement processing and contracts enable to support business administration effectiveness remains a operation. challenge to the IAs • Long , Experience and educated • There is delayed decision making staff in PMU within IAs and the Government; • Low in-house capacity to supervise multiple concurrent projects OPPORTUNITIES THREATS • More flexible procurement • Outbreak of COVID-19 may affect the regulations of the World Bank can be timing of implementation of the used; project; • Big portion of the project funded by • The pending elections late this year – the World Bank- hence increased change of regime may delay competitiveness because of implementation. assurance of timely payments; • Adverse weather conditions may • Short Term Consultants for critical significantly impact the scheduled technical advisory services can be time for implementation of deployed; construction works • There is support from the World • The existing Zanzibar public Bank’s Project Team and it continues procurement Act No. 11, 2016 is not with advice and trainings. supported by regulation Figure 8- SWOT Analysis of Borrower Capacity 35 Based on the details presented in the SWOT, it is noted that the IAs’ internal strengths and opportunities from the external operating context are favourable as compared to the internal weaknesses and external operating environments. Favourable conditions include the following: (a) Government eagerness to see this project through in order to improve availability of electricity in Zanzibar and alleviate overdependence of electricity generation from Tanzania Mainland; (b) Specifications and scopes of the major works contracts are routine and well defined; (c) Though they are of high value, the activities involve less complexity and are standard type and are straight-forward activities; (d) The IAs although have no adequate prior experience in implementing similar World Bank-financed projects, they are showing eagerness to learn given the opportunity which is well addressed in capacity building measures contained in the project; and (e) Market risks are low and potential suppliers, contractors and consultants are likely to participate in the project procurement opportunities. 2.2.4 Conclusions on Borrowers Capacity Conclusions derived from the assessment of Borrowers Capacity are as follows: 1) Delays in procurement process can result into delays in the overall project implementation. Realistic procurement plan and close monitoring of the implementation will enable timely award of procurement contracts; 2) Capacity building of IAs in procurement and contract management should be fast tracked earlier on during the implementation of the project to ensure that the so much required hands on support is provided to the IAs for successful implementation of the rest of the contracts under the program. 3) Adequate mechanism should be provided for knowledge transfer to staff of the IAs from various consultants to be employed in the program. The Terms of Reference will need to be critically reviewed to ensure that knowledge transfer aspects are well incorporated. 36 4) Arrange hands on trainings to the IAs on the use of the World Bank’s Systematic Tracking of Exchanges in Procurement (STEP) in advance of the project implementation. 2.3 Market Research and Analysis 2.3.1 Market research The total value of procurement activities (Goods, Works, Consulting and Non- Consulting Services) envisaged under the ZESTA project is about USD 142 million. The individual contract package is expected to exceed USD 25 million and this justifies the use of PPSD Short Form template. The main players in this tendering project are most foreign international firms/contractors from India, China mainland and few from European countries and Arab countries. The full length of the transmission line will be designed as one lot and the substation will be another lot. The transmission line and substation work will be in one tender document and will be advertised in open international and handled under a single separate Plant Supply And Installation contract. Since the Substations component involves high level of engineering design and engineering complexity must be packaged separately from the transmission lines. As far as the International competitive bidding is concerned, we expect positive market response to our request for bids. The international competitive bidding presents a very strong and ready market, referring to many project conducted by ZECO and TANESCO. 3.2.2 Market Analysis (Transmission line and Substations) The existing market for both Transmission and Substation is 100% dominated by foreign specialized contractor and manufacturers. Most Plant Supply And Installation contracts prices ranging from above USD 30,000,000 are dominated 100% by these foreign contractors who can afford to get financial support from their corporate head offices in case of deficiency in cash flow requirements, collaterals for bank guarantees and other overhead costs during the preparation and implementation of the Plant Supply And 37 Installation contracts. The local contractors (Tanzania and Zanzibar) participating in the bidding process are few to none and mostly will be engaged as subcontractors specifically from mainland partnering with foreign contractors after main Plant Supply And Installation contractor has secured the contracts as winning bidder and they need to register in Zanzibar and establish offices/branches. The local subcontractors are mainly engaged as labour-based subcontractors or as nominated suppliers of key local materials such as Reinforcing bars, Cement, premixed concrete that are needed under the main contractor’s contract. However, these subcontractors face numerous challenges during implementation which might adversely affect the quality of the project in terms of timely completion of activities. Lack of proper equipment and machines, financial constraints due to inadequate capital and or overbearing costs and inadequate skilled technical personnel are some of the challenges these subcontractors encounter thus affecting their full participation and quality of their service delivery for the projects. In the wake of COVID-19 especially in Tanzania-Zanzibar, the Local subcontractors might play a bigger role of bridging the gap in supply of competent engineers and technicians due to travel restrictions in home countries of the main Contractors. However, the portion of sub-contracting will be assessed based on local sub-contractor’s capacity (as explained above) and will be added in the bidding documents. Both transmission and substation in this project are characterized by perfect competition where all competitors are for identical product (s) and price(s) alone is not a factor in deciding the outcome of bidding. Other factors such as past experience in dealing with the contractor(s), worth of technical experience offered in the works, the level and availability of equipment and machinery, the level and available expertise involved for the project and others will instead influence the buyer (borrower). All these factors will create criteria for selecting the right bidder for these works in the perfect 38 competition market. Low supplier power creates a more attractive industry and increases profit potential, as buyers are not constrained by suppliers. High supplier power creates a less attractive industry and decreases profit potential, as buyers rely more heavily on suppliers. 2.3.2 Market Complexity and Competitiveness: With respect to tenders for installation of the BESS together with those for installation transmission line and substations there are considerable number of firms that may show interest to tender. This is based on information obtained from ZECO (Annex 1) which shows considerable level of participation of firms in the tenders floated in 2018 under Zanzibar Energy Sector Support Project financed by Sweden. Also various tenders floated by TANESCO (Annex 2), shows high level of competition particularly in Tender No. PA/001/2018-19/HQ/W/038 - pre- qualification of Plant Supply And Installation contractors for procurement of plant design, supply, installation, testing and commissioning under TANESCO Transmission Grid Rehabilitation and Upgrade Project (TTGRUP) for rehabilitation of nine (9) grid connected substations under lot 1, 2 & 3 where a total of 51 contractors showed interest The ZECO has not experienced tough market complexity because all the time period is adhered with procurement laws and regulations for cases, ZECO tenders or procurement and projects. Some bidders have their own decision not based on the procurement process so they might not have agreed with company decisions since the procuring entity follows the procurement procedures, finally they end up to the agreement. Some bidders delaying to purchase bids documents and final ended up with bid extension request. Currently ZECO has set limit time to purchase tender document this has rectifies the said challenges. Some bidders’ appeals to the public procurement authority but always ZECO come out with positive outcome because it always adhered to compliance with procurement regulations. 39 To be safe within the procurement process from submission of tender document to the awarding period, bidders are requested by ZECO to secure the process by submitting the bid security. Any default (such as refuse to sign the contract, withdrawal from the procurement process) by bidder within the process period the security will be used against him. The implementation process, after the contract signing is secured by performance security. 2.3.3 Financial Situations The major inputs for delivery of the planned construction contracts are construction material, equipment, and labour. The cost of these inputs is relatively stable. Although contractors’ pricing strategy may vary, because the contract is awarded with different currencies (based on the preference of bidders) and because contracts of longer duration are subject to price adjustments provisions, pricing strategy would be expected to be competitive. Contractors will have low risk of inflation impacts. The domestic contractors are facing challenges in obtaining working capital with reasonable interest (interest is around 14% commercial lending rate) and also their low capability in absorbing delayed payments. Timely payment of contractors will be important to enable contractors perform without financial distress. 2.3.4 Procurement Trend From the trend of tenders invited recently in Tanzania (Annexes 1 & 2), there is an indication that electrical work contractors will tend to price their bids competitively due to the exhibited stiff competition. Many contractors, globally, do not have works at hand and the large costs of idle equipment (Excess capacity) that they already have on inventory pushes them to bid for marginal profits. Major international contractors have sophisticated bid pricing technology while local contractors tend to price incrementally based on prior experience. The client is, therefore, benefiting from the competitive bidding by getting economical and reasonable bids. 40 In Zanzibar, such project of building transmission line is not common but it is opposite to Tanzania Mainland (TANESCO), they normally construct the high voltage transmission lines. In such circumstance it shows that, there are enough and competent potential bidders and consulting firms in the market. 2.3.5 Risk Management The overall project procurement risk is assessed to be Substantial. The residual fiduciary risk will be lowered to Moderate once the proposed mitigation measures had been satisfactorily implemented. The risk starts from project concept to commissioning. The procurement risk and management, it is primarily concerned with identifying risk potentials and managing impacts on the contract schedule, cost and performance (including the delivery of the stated requirements). ZECO on its part should be able to identify, evaluate how risks will be managed at different stages of procurement process to minimize adverse impact to the procurement approach and objectives. With mitigation measures put in place, the residual risk is expected to reduce substantially. 2.3.6 Design and Specification Risk From project concept until its commissioning, there are always risks associated with design and technical specifications. Identifying the risks at the time of preparing technical specifications subsequently putting mitigation measures is paramount with respect to timely delivery and good quality of the project. Borrower has to thoroughly exhaust all means to make sure the objectives of the project are achieved through detailed technical specifications which will ultimately enable suppliers to prepare competitive bid(s) having economy, value for money (VfM) that conforms to the requirements set out. When adopted during project implementation, the supplier must use their skills and technological expertise to ensure quality delivery. Having also categorically allowing for Engineering, procurement and construction contracts for interested firms, allows the Plant Supply And Installation contractors to go through owner’s Technical specifications and Employer’s requirements for guidance while updating and improving the 41 same specifications according to extracted data from site prevailing conditions and relevant international standards such as IEC, BS, DIN, ASTM, IEEE etc. 2.3.7 Evaluation Criteria Risk The criteria for evaluation will be fixed during preparation of bidding document(s) for Plant Design, supply and installation contracts as per Standard Procurement Documents (SPD) from the World Bank. The criteria will be relevant to the scope and complexity of the works in order to ensure the right bidder/supplier(s) are selected whose bid(s) meet the requirements and offer the best VfM. Since the selection, method starts with pre- qualification of bidders/suppliers in order to get the most competent and capable suppliers and those who are pre-qualified will be issued with the bidding documents to submit their technical and financial bid(s). Some less cost procurement will be subject to post qualifications and Factory Acceptance Test if necessary. Incomplete evaluation criteria lead to risk of awarding contracts to less competent suppliers, which might result in failure to meet project objectives. Hence it is the responsibility of borrower to ensure detailed and right selection and evaluation criteria are inserted into the bidding document and the same are fairly used throughout for the evaluation of suppliers. The application of evaluation criteria is as summarised in the table 1 below: S/N Evaluation Process 1 Pre-qualification Process  Each applicant must meet the selection and evaluation criteria mostly comprise of the following but not limited to:-  Eligibility  History of non-performance  Experience (General and specific) and past performance on similar contracts 42  Capabilities with respect to personnel, equipment, construction and manufacturing facilities  Financial capabilities and annual turnover All applicants who meet substantially the qualification and selection requirements are invited to submit their bid(s) 2 Request for Bid(s) Three evaluation steps are involved Substantial responsiveness to the requirements of the bid  Preliminary evaluation/examination: Checking that all mandatory requirements are met  Verification of all relevant information such as all forms are signed by the signatory/authorized persons, if bidder is a JV or agent, authorization from Manufacturer etc  Eligibility: all goods originate from eligible countries  Bid security: if the bid security conforms to the requirements  Bid validity period: if the bid conforms to the stipulated validity period  Completeness of bid: check completeness of the bid and no partial bid   Technical and commercial evaluation:  Confirming first if all mandatory technical requirements are substantially met based on the criteria. Thereafter, evaluation of financial proposal to ascertain their substantial responsiveness will follow. Both are evaluated based on a pass/fail basis. The criteria are set such that do not limit the market competition unnecessary and thus the rejection of the bid will include:  Failure to comply with technical requirements  Failure to comply with minimum experience criteria  Refusing to bear important liabilities e.g insurance coverages, performance guarantees etc  Inability to meet critical delivery schedule  Failure to bid the required scope Evaluation of cost: 43 The quoted costs are evaluated against monetarily quantifiable criteria and compare costs of each bidder. The factors selected can be quantified in monetary terms hence RFB approach is used. However, if the factors selected could not be monetized then an RFP approach using Rated type criteria would be used. The monetary quantifiable factors include domestic margin preference, time schedule adjustment, payment schedule adjustment, life cycle costing, functional guarantees min/max adjustment and unconditional discounts for all works contracts. The bid price(s) should also be adjusted (arithmetic corrections or any discounts) for the purpose of comparison. As for ZECO, time schedule adjustment and discounts for multiple lots are preferred and applied as part of monetary quantifiable factors for Plant Supply And Installation contracts. I. Most advantageous bid: II. The qualified bidder whose bid is substantially responsive and has the lowest evaluated cost after comparison of bids as from above. 2.3.8 Plant Supply And Installation works Contract Type Risk Based on previous experiences along with Bank’s procurement regulations, ZECO as borrower will try its best to establish and follow keenly, proper procurement arrangements better suited with the project in order to avoid the associated risks. The risks can be identified through the contract type envisioned to be put in place, the conditions of the contract, pricing mechanism, contract time delivery and the expected quality etc. Due to the complexity and nature of the project design, implementation of transmission and substation infrastructures is also complex, ZECO as implementing agency has envisioned implementing the project as Plant Supply And Installation contract type and not otherwise this allows the employer to shift the risks to Plant Supply And Installation contractor who is 44 more conversant with the complexities and design of the projects. First and foremost, the selection and adoption of the contract type is based on nature of the works involved. In addition, in doing so, ZECO has borrowed past experiences and relevant lessons learned from TANESCO. At this point in time abandoning the Plant Supply and Installation contract type and go for any other types such as Turnkey contract type, for the same scope is not preferred by ZECO based on the assessed risks of both as detailed hereunder. 2.3.9 PLANT SUPPLY AND INSTALLATION Vs Turnkey risk assessment There is not huge difference between the two types, however in PLANT SUPPLY AND INSTALLATION Contracts, an employer will provide basic conceptual engineering design to a contractor and the latter shall perform the detailed design based on received conceptual design and technical specifications as in this case the provision of basic design and technical specifications is performed by consulting firm engaged by ZECO.The PLANT SUPPLY AND INSTALLATION contractor will carry out the detailed engineering design of the project; procure all the equipment and materials necessary, and then construct to deliver a fully commissioned functioning facility. In Turnkey, Employer will only provide certain technical specifications of the project, it is the responsibility of the contractor to prepare basic, and detail design of the project based on the given specifications. Contractor is responsible to perform construction and commissioning, start-up and takeover of the plant to employer, but in PLANT SUPPLY AND INSTALLATION, it may be the responsibility of other third person to do commissioning and start up. 2.4.1 From an execution point of view Turnkey: is preferred where several activities are involved. The single-party reduces coordination efforts with many contractors that are required otherwise. 45 PLANT SUPPLY AND INSTALLATION: is preferred where complex engineering or proprietary technology is involved like power infrastructures, oil & gas and process plants, transmission line etc. 2.4.1 From the risk point of view; Using Turnkey: Client (ZECO) does not have hands on involvement in the design part of the infrastructures both transmission and substations. The contractor will be solely responsible in the development and management of basic and detail designs and specifications from the set of given specifications during bidding. Thus more likely modification (deletion or addition) can occur at the time of adopting the client’s requirements during design and construction stage which might affect greatly the costs of the project and final as built infrastructures. Using PLANT SUPPLY AND INSTALLATION: The client (ZECO) will be involved from the beginning in the development of designs and specifications to suit intended purposes. Thus the risk of not having the idea how the final infrastructures will be is minimized. The variations to the contract will be greatly controlled as the client is fully aware of the additions and deletions of specifications which affect the final as built infrastructures. Table 2 below summarizes the other risks and proposed mitigation measures: Table 2: Assessed Risks Risk Factor Responsibilit S/No Risk Impac Likely Mitigation Measure Time frame y t hood Assign two specific Inadequate number of procurement officers 1. procurement staff allocated MJ L Immediately ZECO to be responsible for for project activities the project Ensure procurements Inefficiencies in processing, are processed as per Throughout 2. approving, and managing MJ L the timelines in the project ZECO procurement activities procurement plans, implementation including timely 46 Risk Factor Responsibilit S/No Risk Impac Likely Mitigation Measure Time frame y t hood preparation of TORs and specifications by user and technical departments Provide sufficient working area/rooms Within 18 Inadequate working and space for record month of 3. area/rooms and space for Mi L keeping/filing ZECO project record keeping/filing Use of TANePS for effectiveness National Competitive Bidding activities Provide training in World Bank During procurement implementatio ZECO procedures and n processes. Recruit a Inadequate knowledge and Procurement/Contract experience in World Bank Management procurement procedures 4. MJ L Consultant with and processes for high- qualifications and Within value and complex experience 18months of contracts ZECO acceptable to IDA for project a period of at least effectiveness two years to work with the project team and build capacity of the agency Conduct training tailored towards Within Inadequate knowledge and addressing 18months of 5. skills/experience in contract MJ L weaknesses in ZECO project management contract management implementation for PMU and technical departments’ staff. 47 Risk Factor Responsibilit S/No Risk Impac Likely Mitigation Measure Time frame y t hood •Maintain health relationship with suppliers •Stable politics to Throughout ensure safe working bidding process COUNTRY& 6. Market Complexities MJ L environment and project ZECO •Splitting wide scope implementation into lots •Payment in multiple strong currencies •Set out clear project During objective preparation of •Having detailed PD for Plant CONSULTANT& 7. Design and Specification MJ L specifications which Supply and ZECO will translate into Installation desired output works •Select right procurement approach (with or without pre- During qualification) preparation of •Select right SPD for PD for Plant CONSULTANT & 8. Evaluation criteria MJ L preparation of bid Supply and ZECO documents to be Installation issued to works suppliers/bidders •Insert right evaluation criteria During preparation of Select proper contract PD for Plant CONSULTANT& 9. Contract Type MJ L type to apply relevant Supply and ZECO to the scope of work Installation works Legend: Impact- MJ-Major, Mi-Minor, Ne-Negligible, NA-Not Applicable Likelihood- L-Likely, EL- Equal Likelihood, UL-Unlikely, NA-Not Applicable 48 49 Table 3 below summarizes the other risks and proposed mitigation measures: Table3: Identified Procurement Risks Category Risk Mitigation Measure Time Frame Responsibility Likelih Imp ood act Rating Rati ng Right way of Complex internal High High ZECO will create Throughou MoWEM/ activities processes and dedicated PMU, TB t project ZECO and Project coordination among and decision making implement Decision departments authority such as ation Making restrain streamlined responsive decision-making on management. structuring, scheduling and procurement processes. ZECO Lack of resources High High 1. Supplement Throughou MoWEM/ 50 Category Risk Mitigation Measure Time Frame Responsibility Likelih Imp ood act Rating Rati ng Resources and in experiences resources with t project ZECO and impacts ability to project preparation implement Capacity make timely and procurement ation decisions on bids consultants supports evaluation and 2. Support contract awards procurements implementation with world bank procedures. Security Security concerns High Med ZECO will Before and MoWEM/ (e.g. COVID 19 ) aggressively during ZECO prevent qualified communicates plan project contractors, and addresses implement 51 Category Risk Mitigation Measure Time Frame Responsibility Likelih Imp ood act Rating Rati ng suppliers and concerns via ation consultant from continued participating in contractors, supplier procurement and consultant process engagements. Confidentiali Complex internal High Med 1. Create dedicated, Throughou MoWEM/ ty of processes and experience and t project ZECO Information multi-department skilled Procurement implement involvement in team 2. All ation Procurement Evaluation members Committee and shall sign covenants contract award agreements 3. Create review prevent dedicated secure 52 Category Risk Mitigation Measure Time Frame Responsibility Likelih Imp ood act Rating Rati ng maintenance of space for document procurement documents. 3. Separate Project procurement management. Specificatio Inability to provide Med High 1. ZECO requires all Preparatio MoWEM/ ns required submitted equipment n of ZECO specifications and to be type-tested 2. procureme inspection of ZECO benchmarks nt materials. requirements against implement international ation and standards (use of works 53 Category Risk Mitigation Measure Time Frame Responsibility Likelih Imp ood act Rating Rati ng project preparation completio consultant) n time Market Risk Packages, lot sizing, High Med 1. Create Packages Throughou MoWEM/ and qualifications and Lot Sizing to t project ZECO limit competition make procurement implement attractive to both ation large international and smaller domestic firms 2. Add capacity requirements to evaluation criteria 3. Continued market engagement to gain 54 Category Risk Mitigation Measure Time Frame Responsibility Likelih Imp ood act Rating Rati ng feedback and refine procurement approach to encourage domestic supplier participation Legal issues Compliance and High Med 1. Competent Throughou MoWEM/ regulatory and procurement t project ZECO introduction of consultant to support implement world bank procurement ation procedures activities and effective contract management. 2. ZECO will create 55 Category Risk Mitigation Measure Time Frame Responsibility Likelih Imp ood act Rating Rati ng dedicated PMU, TB and decision making authority. 56 Based on the details above risk analysis, it is noted that the IAs’ internal strengths and opportunities from the external operating context are favourable as compared to the internal weaknesses and external operating environments. The summary of procurement Favourable conditions include the following Unfavourable or project procurement risks include: (a) Delay in procurement processing and Inadequate Contracts Implementation management and monitoring may increase cost and time of contracts completions; (b)Substandard quality of design may trigger substantial contracts variation thereof and increase completion cost and delay in completion time. (c) Delays in meeting planned procurement milestones, delay in decision making, substandard quality design documents, and frequent change of scope, and and so on are challenges that cause contracts completion time and cost overruns. Recommended Risk Mitigation measures: a) Ensure that the design Consultant have sufficient professional experience and ensure availability of adequate data; b) Ensure that Project Management Team for the project is manned by Experts with sufficient professional qualifications and experience; and c) Conduct tailored training for contract management, disputes and claims management for PMU and Technical Staff of the IAs at early stages of project implementation. Procurement Objectives Following on the SWOT and Risk Assessment the key Procurement Objectives that will support the delivery of the Project Procurement and achieve Value for Money are follows: - i) Timely completion-the optimized timeframes for contractor selection and contract implementation through optimized procurement decision making and structure of the procurement arrangement 57 ii) Minimize procurement load, contract integration risk and contract management load. iii) Maximize competition across the procurements from local and international firms. This shall enable the value for money out put results. To support achievement of these objectives, this detailed PPSD has been prepared to strategize the fit-for-the-purpose market approach and selection methods that would deliver the project requirements following the World Bank’s core procurement principles and by following the Procurement Regulations. Recommended Procurement Approach In first 18 months of the project there are major Works Procurement and Consulting Services activities are planned. Keeping in view the procurement objectives, the recommended procurement approach for Works and Consulting Services resulting in Procurement Plan is given below: Major items under the Works procurement are supply and install of BESS, PV, SCADA and Transmission Line. These activities have detailed industry standards and specifications and a well-defined market structure. Therefore, recommended procurement method for these activities is through Request for Bids with Single Stage-Single envelope process. The use of Request for Proposal and Rated Criteria is therefore not assessed due to detailed and well-defined industry standards and specifications. After the market analysis, the market approach for the major items is recommended as International. The activities are packaged separately in Procurement Plan due to different markets and suppliers. Some of the major construction work activities required pre-qualification of contractors and will updated in Procurement Plan. Simple Works activities will be processed using Post -Qualificaiton. The major procurement activity for Consulting Services is Design and Supervision for BESS, SCADA and Transmission Line. The activities are packaged in a separate activity due to the different scope and nature of the assignment. Once the design is ready, the decision for having a single or multiple lot for associated Works will be taken. The major activities for Works in Procurement Plan for first 18 months of the project would use a single-stage, one-envelope Request for Bid with Pre- Qualification as selection method. This approach is fit for purpose for the contracts under the project. 58 Key features of the Procurement Approach include: 1. Use of the Bank’s Standard Procurement Document for RFB for Goods and Works with Pre and Post Qualification 2. Use of Pre-Qualification of Bidders will help in screening the contractor’s capacity prior to receiving the bids. The Post qualification will help in reducing time for internal approvals and processing for simple Works activities. 3. Packaging is done as per market to generate competition and minimize the activities on critical path 2.5 Procurement Arrangements Based on the risks identified above the following procurement arrangements are proposed: Table 4: Recommended Procurement Approach for the Electricity Transmission Lines, Installation of Substations and Grid Connected BESS Attribut Categor Attribute Selected Justification Approach e y 1.1 Performance Contractors would be selected based Specifications on their competence and / qualifications. The contractors will be qualifications required to design and install the transmission line/system which fits the area and the environment 1. Requirements 1.2 Applicable Contractors will be required to Additio adhere to environmental nal requirements of the RGoZ and the sustainability World Bank requirements 2.1 Plant supply The contractor will be required to Contrac and installation design the works to fit to Employers t type Requirements for approval before construction. Followed by stra trac Con procurement and ending with 2. t 59 Attribut Categor Attribute Selected Justification Approach e y construction. This approach assist employer to leave all associated risks to contractors and consultant. In that sense, contractor and consultant shall themselves commit to perform well. 2.2 Pricing admeasurement Scope of works is not well defined and costing s upfront and will be established during mechanism the design prepared by the contractor, and payments will be based on the quoted schedule of rates. The market approach shall be used in pricing and costing. 2.3 Unit price and In traditional contracts, timely and Selecti total price quality contract delivery on of cost inclusive of responsibility/risk is of the contractor and price applicable taxes while design change risks are of the mechanism except VAT employer and unit price is payable by appropriate. Employer 2.4 Collaborative Best option given the remote location Supplie and multitude of challenges r relationship 2.5 Price Percentage/ The contracts periods are more than adjustments 18 months. indexes Compensation for price changes during implementation period. 2.6 Form of World Bank The market and employer are well contract Standard accustomed to this form of contract. (terms and Procurement Risk allocation is for a party who is in conditions) document a better position to manage the risks. based on SPD for Supply and teg Install of Plant’s y 60 Attribut Categor Attribute Selected Justification Approach e y Conditions of Contract 3.1 RfB The borrower is able to specify Selecti detailed requirements and the on method bidders can respond in offering competitive bids with adequate information (scope, specifications and quantifications are well defined). 3.2 Market Single Stage The scope of definitions and level of approach Single experience of the client, and the 3. Selection methods envelope, open market situation in Zanzibar are international appropriate for this approach. competition 3.3 Post Post qualification promotes Pre/Pos Qualification competition and eliminates the t possibility of collusion among Qualification bidders. Table 5: Recommended Procurement Approach for Consultancy Services. 61 Selected Justification Approach Procurement Open To maximize competition, allows Approach both National and International Consultants to participate Specifications/ TOR N/A TOR Sustainability Applicable Requirements Pricing and Time based Time based contracts offers costing flexibility when there is time mechanism slippage in contractor’s contracts Supplier Collaborative relationship Price Percentage/ Based on Consumer price indices adjustments indexes Form of World Bank The market and employer are contract Standard well accustomed to this form of (terms and Request for contract. conditions) Proposal This form of contract, which is Documents part of the SBD, has been well updated over the years to reflect cumulative experience. Risk allocation is for a party who is in a better position to manage 62 Selected Justification Approach the risks. Market Two envelope, The scope of definitions and level approach open of experience of the client, and international the market situation in Zanzibar competition are appropriate for this approach. Evaluation Quality Cost Allows the quality and financial Selection Based Selection proposals to be considered Method (QCBS) separately in accordance with the given proportions. Evaluation of Not Applicable Cost Domestic Not Applicable Preference Rated Criteria Not Applicable 2.5.1 Selection method: For the large transmission, substations and ICT packages, Open International Competitive Procurement (OICP) will be used as appropriate. For Consulting Services, the preferred method would be Quality and Cost based Selection (QCBS) method. However, other methods including direct selection would be used, as stipulated in the procurement plan. For National Open Competitive Procurement (NOCP), country procurement system may be used, subject to conditions to be laid down in the financing agreement and the procurement plan. 63 2.5.2 Contract strategy: Goods, services and civil works will be packaged in economical packages of related procurements to attract bidders who are qualified and can offer good prices and complete contracts within stipulated period resulting into value for money. A Procurement Plan shall be developed that includes the summary of the procurement arrangements for each contract under the project. 2.5.3 Pricing Approach: When embarking on a major capital project, the project owner must select a basic strategy for the contracting of the project. Various approaches exist and for good reasons, the choice of the contracting approach could affect the outcome of the project. The strategy must be selected with careful consideration of not only the potential upside of the approach, but also an appreciation of the demands each strategy places on the owner’s organization. Any of these strategies can result in undesirable consequences if it is selected without the necessary resources in place. The choice of price and costing mechanism should be made at the time the contract type and SPD are selected. Main pricing and costing models are: 2.5.4 Fixed Price contract This is whereby a supplier agrees to perform the scope of services for a fixed contract amount. Payment amount may be linked to completion of milestones and the contracts may be appropriate when:- • Scope of the contract can be clearly and accurately specified and can be linked to apparent milestones and payments at the time of selection e.g simple civil works or consulting services • Supplier is responsible for delivering the completed works e.g industrial plant or turnkey contracts and paid on lump sum basis per contractual milestones 64 2.5.5 Performance based contracts Performance based contracts are contractual relationships where payments are made for measured outputs (performance targets) instead of inputs. The outputs aim at satisfying functional needs in terms of quality, quantity and reliability. This kind of contract may be appropriate for: • The provision of non-consulting services to be paid on the basis of outputs; and • Operation of a facility to be paid based on functional performance. 5.4.3 Schedule of Rates/Admeasurements This is a contract based on estimated quantities of items and contractual unit prices for each of these items. Payment is based on the actual quantities and contractual unit prices. It is appropriate for works when the nature of the work is well defined but the quantities cannot be determined with reasonable accuracy in advance of construction. As it is the case with the construction of transmission and substation infrastructures, the quantities involved cannot be precisely determined during preparation of specifications and bidding documents unless during construction period after the works contractor having done detailed designs relevant to site prevailing conditions. Hence the works contractor under the supervision of management consultant will be able to determine precise quantities after execution of works, the quantities will be rated per agreed contractual unit prices. 2.5.6 Time Based and Materials Time based contracts are contracts where the payment is made on agreed rates and time spent plus reasonable incurred reimbursable expenses. These types of contractual arrangements may be used for: • Emergency situations, repairs and maintenance works; • Complex consulting services e.g supervision of construction, advisory services. 65 This type of contract is not appropriate for goods and industrial plants. 2.5.7 Cost Plus Cost plus contracts are contracts that require reimbursable based payments for all actual costs plus an agreed fee to cover overhead and profit. To minimize the risk to the borrower, suppliers under these contracts must make all their records and accounts available for inspection by the borrower or by some agreed neutral third party. The contract should also include appropriate incentives to limit costs. Table 6: summarizes risks and benefits of each pricing mechanism and circumstances suited for application to the works contracts Type Requirements Advantages Disadvantages Fixed Price • Work can be • Full extent of • Contractor may accurately cost & liability include excessive specified known before contingency to • Access date & work cover risks program commences • Contract basis may duration are • Cost control be undermined by known responsibility of significant • Risks can be the contractor variations reasonably • Supervision • Contractor may identified minimal seek to cut corners Schedule • Work can be • Permits • Contractor may Rates/Admeasure accurately appointment of price the bill to his ments (Bill of foreseen but contractor commercial Quantities and cannot before full advantage by Schedule of Rates) accurately be extent of work increasing/decreasi measured from is known ng the rate of work outset • Offers judged to be 66 Type Requirements Advantages Disadvantages • There is an opportunity of under/overestimate indication of the assessing the d Work supervision extent of the cost of work & QS services work at tender during the required stage contract Time Based and • Minimum • Allows early • Cost control is Material specification appointment of difficult High • High confidence contractor supervision No & trust in the Minimal incentive to contractor Used specification improve where the work required at productivity No cannot be outset incentive for foreseen completion accurately enough to estimate cost Cost Plus Fixed • Minimal • Incentive to • If varied or delayed Fee specification complete contractor will • Sufficient detail early& revise fee No of work to economically incentive to enable as fee is fixed productivity High contractor to Allows early supervision estimate appointment of • Difficult to managerial contractor accurately assess resources and Tendering time costs to set fee profit reduced • High confidence & trust in the contractor Cost Plus • Minimal • Allows early • Cost control 67 Type Requirements Advantages Disadvantages Percentage specification appointment of difficult, the higher • High confidence contractor the cost the higher & trust in the Tendering time the % return No contractor reduced incentive to productivity • High supervision 2.5.8 Conclusions All parameters required to the market for the project, such as potential contractors, financial institutions are existing to support the project in local and international forms. There is an adequate number of construction firms that are likely to tender for the envisaged electricity transmission works. Similarly, for consultancy assignments there is a large pool of international Consultants who are likely to show interest to tender for the consultancy services. 68 Table 5 shows the activities for the first 18 month of the ZESTA Implementation PROCUREMENT ACTIVITIES FOR FIRST 18 MONTHs OF ZESTA IMPLEMENTATION Contract Title, Estimated Bank Procurem Selecti Evaluation Expected Description and cost (USD Oversight ent on Method Start Date Category M) and Risk Approach Metho Rating d Consulting Services Consultancy services 1.1 Prior Internation QCBS Lowest July 2021 for al Evaluated supervision/monitoring Cost of the 132kV backbone transmission and substation infrastructure works Consultancy services 0.5 Post Internation QCBS Lowest August2021 for safeguards al Evaluated implementation support Cost to ZECO Consultancy services 1.0 Prior Internation QCBS Lowest November for design, procurement al Evaluated 2021 support, and Cost supervision of SCADA/EMS system Consultancy services 1.2 Prior Internation QCBS Lowest October202 for design, procurement al Evaluated 1 support, and cost supervision of solar PV generation plant and battery energy storage system (BESS) Consultancy service for 0.2 Post Internation CQS Lowest October conducting a birds and al Evaluated 2021 bats study along the Cost proposed 132Kv backbone transmission line route in Unguja Consultancy services 1.5 Prior Internation QCBS Lowest February for design, procurement al Evaluated 2022 support, and Cost supervision of the medium voltage/low voltage network 69 extension and strengthening, and last mile access scale-up Consultancy services 0.4 Post Internation QCBS Lowest October for RAP implementation al Evaluated 2021 monitoring Cost Individual consultant: 0.288 Post National IC Comparison September Assistant Project of CVs 2021 Manager for ZECO PIU Individual consultant: -0.216 Post National IC Comparison July 2021 Procurement Specialist of CVs for ZECO PIU Individual consultant: 0.18 Post National IC Comparison July 2021 Social Safeguards of CVs Specialist for ZECO PIU Individual consultant: 0.18 Post National IC Comparison July 2021 Health and Safety of CVs Specialist for ZECO PIU Consultancy services 0.8 Post Internation QCBS Lowest July 2021 for developing the al Evaluated Electricity Integrated Cost Resource Plan Consultancy services 0.5 Post Internation QCBS Lowest May 2022 for sector capacity and al Evaluated skills assessment Cost Consultancy services 0.6 Post Internation QCBS Lowest May 2022 for Energy Efficiency al Evaluated Masterplan Cost Individual consultant: 0.15 Post National IC Comparison February Gender Specialist for of CVs 2022 MoWEM Individual consultant: 0.15 Post National IC Comparison February Safeguard Specialist for of CVs 2022 MoWEM Works Design, supply, and 16.0 Prior Internation RFB Lowest June 2021 installation of the al Evaluated proposed 132kV Cost backbone transmission line infrastructure 70 Design, supply, and 25.0 Prior Internation RFB Lowest June 2021 installation of the al Evaluated proposed 132kV Cost backbone transmission substations at Welezo, Matenwe, and Makunduchi. Design, supply and 8.0 Post Internation RFB Lowest September installation of the al Evaluated 2022 proposed SCADA/EMS Cost system Design, supply and 20.0 Prior Internation RFB Lowest July 2022 installation of the al Evaluated proposed medium Cost voltage and low voltage network extension and strengthening works Design, supply and 22.0 Prior Internation RFB Lowest August 2022 installation of the al Evaluated proposed battery Cost energy storage system (BESS) Design, supply and 15.0 Prior Internation RFB Lowest August installation of the al Evaluated 2022 proposed solar PV Cost generation plant. • Individual consultant budgets are estimated for a three-year contract duration Summary of PPSD to Inform the Bank’s Preparation of the PAD Procurement Strategy Procurement for the proposed project will be carried out in accordance with the ‘World Bank Procurement Regulations for IPF Borrowers under Investment Project Financing’, dated July 1, 2016, and revised in November 2017 and August 2018, hereafter referred to as ‘Procurement Regulations’. The project will be subject to the World Bank’s Anticorruption Guidelines, dated July 1, 2016, and beneficiary disclosure requirements. 71 The Zanzibar Electricity Corporation has experience in the procurement and execution of large contracts for goods and it has been managing small contracts for consultant and civil work. However, the procurements project will increase procurement activity for Procurement Management Unit that is, will put pressure on the ZECO’s ability to effectively and efficiently process the increasing procurement volume. The project will strengthen the ZECO’s procurement capacity by providing training to procurement staff under the PMU and other units in the ZECO, more over ZECO will use the World Bank’s online procurement management system, Systematic Tracking of Exchanges in Procurement (STEP). The detailed 18-month Procurement Plan, once agreed with the borrower, will be published on the World Bank website through STEP. The procurement risk analysis for the Project is ready for project implement. The procurement approach for Design and Installation of the BESS System, and Design and Installation of Electricity Transmission Lines will use open international and national with one envelope, post qualification, and RfB selection; for all supplies contracts, the market approach will be open international and national with one envelope, post qualification, and RfB selection; for Selection of consultants will use competitive selection method, QCBS, through open international and national using Request of Expression of Interest for short listing and then issuing RFP. Selection of ICs, this will follow the World Bank’s Procurement Regulations for Selection of Individual Consultants and the contract would be framework agreement. The tender document for procurement of substations and 132Kv transmission line is around to be finished for preparation; this will help to shave the excess time period which procurement consultant will take to prepare the document once after his engagement. Separate Quality- and Cost-Based Selection procurement will be used for procuring consulting services for the project components to develop functional requirements for the required components, develop procurement documents, evaluation of bidders and manage the procurement of contractor on behalf of the ZECO. Following the market analysis, based on information obtained from various sources including historic data available with IAs, the PPSD concludes that there might be less supply market risk for the identified procurement activities. Since there are reasonably adequate market players, risk of bid participations or tender competition risk is considered not high. The contract packaging, market approach options, selection methods and market route arrangements have been guided by the risks identified in the PPSD and their mitigations. The initial PP has been prepared for the first 18 months from the date of project effectiveness. 72 Conclusion Based on the detailed project contract definitions, nature of the contracts and market context analysis including prior experience and capacity of the client/IAs, the PPSD recommends the following fit for purpose procurement approaches and strategy: (a) For the Design and Installation of the BESS System, and Design and Installation of Electricity Transmission Lines.- Performance specifications, Market analysis contracting arrangement have been concluded as fit for the purpose. The market approach will be open to national and international market approach with one envelope, post qualification, and RfB selection method is recommended. (b) For all supplies contracts, the market approach will be open to national and international market approach with one envelope, post qualification, and RfB selection method is recommended. (c) Selection of consultants/firms for supervision services. The nature of the assignments is well established and standardized, though the IAs has no ample prior experience in selecting and managing consultancy services contracts of similar scope, magnitude and complexity. The competitive selection method, QCBS, through open international market approach option using Request of Expression of Interest for short listing and then issuing RFP will be deployed. (d) Selection of ICs. This will follow the World Bank’s Procurement Regulations for Selection of Individual Consultants and the contract type would possibly be framework agreement. 73 ANNEX 1 PARTICIPATION OF BIDDERS IN THE RECENTLY INVITED TENDERS FOR SUPPLY OF VARIOUS ELECTRICAL MATERIALS IN ZANBIBAR Contract Vendor Name Tender name Reference Contract cost Genus Power Infrastructure SUPPLY OF ELECTRICITY ZECO/GR/07/2020/ USD 6 1 s Ltd ENERGY METERS 15 13,770.00 Wasion Group (Tanzania) SUPPLY OF SINGLE ZECO/GR/11/2020/ USD 2 Limited PHASE SPLIT METER 20 72,292.5 SUPPLY OF ELECTRICITY ENERGY METERS WITH ZECO/GR/08/2020/ USD 3 Inhermeter ENCLOUSERS 16 17,657.61 SUPPLY OF Osaju DISTRIBUTION ZECO/GR/03/2020/ TZS 4 Company Ltd TRANSFORMER 06 982,790,000.00 Vuka Timbers SUPPLY OF WOODEN ZECO/GR/01/2020/ TZS 5 Tanzania Ltd POLES 04 2,729,889,803.00 Volex and Electrical SUPPLY OF ZECO/GR/11A/202 USD 6 Decorators CONDUCTORS 0/22 2,340,647.43 OSAJU COMPANY Supply of High Tension ZECO/GR/26/2019/ TZS 7 LIMITED and Low Tension 31 2,715,464,000 Fasima SUPPLY OF LOW General TENSION AND HIGH ZECO/GR/25/2019/ TZS 8 traders Ltd TENSION MATERIALS 30 1,211,400,000.00 SUPPLY OF 11kV CUBICLE, INSTALLATION AND COMMISIONING OF K13 & K15, VACUUM CIRCUIT BREAKER TYPE VD4/P P210 12kV 2000 A31.5 KA AND VACUM ZECO/GR/4/2019/0 USD 9 ABB CO. Ltd CIRCUIT BREAKER TYPE 9 171,808,00 74 VD4/P P150 12kV 1250A 31.5KA SMART ZONE COMPANY SUPPLY OF STAFF ZECO/GR/10/2020/ TZS 10 LIMITED UNIFORMS 18 19,956,250.00 SUPPLY OF TWO MOTOR VEHICLES UNITS (LAND NOBLE CRUISER DOUBLE CABIN ZECO/GR/15/2020/ USD 11 MOTORS LTD PICKUP HARDTOP) 26 96,278.00 SUPPLY OF FOUR MOTOR VEHICLES UNITS (LOT 2- 3 HILUX DOUBLE CABIN PICKUP 2GD STD TOYOTA MANUAL AND LOT 4-1 TANZANIA LAND CRUISER PRADO ZECO/GR/16/2020/ TZS 12 LIMITED VXL AUTO) 27 424,016,121 SUPPLY OF SPARE JAWAJA AUTO PARTS FOR MOTOR ZECO/GR/06/2020/ 13 PARTS VEHICLES 11 N/A SUPERDOLL TRAILER MANUFACTU ZECO/GR/27/2019/ TZS 14 RER Co. Ltd SUPPLY OF GENERATORS 32 86,961,280.00 AL-QASSMY RENOVATION OF ROOF TRADING SAATEN AT MAIN STORE ZECO/CW/01/2020 TZS 15 COMPANY Tz BULINDING SAATEN /07 38,252,500.00 HASAL BUILDING CONSTRUCTION OF CONTRACTO WALL SORROUNDING TZs 16 RS Co. Ltd POWER STATION 69,935,500.00 Social Economic Research ans PREPARATION OF Training STAKEHOLDER ZECO/SR/02/2020/ TZ S 17 Association ENGAGEMENT PLAN 02 54,200,000.00 75 SMART ZONE COMPANY ZECO/GR/10/2020/ TZS 18 LIMITED SUPPLY OF 775 T-SHIRTS 18 19,956,250.00 PREPARATION OF AN ENVIRONMENTAL AND Dr. NICOLAS SOCIAL MANAGEMENT TZS 19 MWAGENI PLAN IN ZANZIBAR ZECO/SR/2020/ 35,000,000.00 JAWAJA AUTO SUPPLY OF SPARE PARTS ZECO/GR/06/2020/ TZS 20 PARTS FOR MOTOR VEHICLE 11 354,252,000.00 VOLEX ELECTRICAL AND DECORATION SUPPLY OF TZS 21 Ltd CONDUCTORS 128,000,000.0 PROVISION OF CLEANING BROADWAY AND GARDENING ZECO/SR/01/2019/ TZS 22 COMPANY Ltd SERVICES 23 86,164,248.00 SUPPLY OF 185MM2 KILIMANJARO UNDERGROUND TZS 23 CABLE (T) AMOURED CABLE 282,000,000.00 RAKAM GENERAL SUPPLY OF 33kv SUPPLY Co., DROPOUT FUSE AND ZECO/GR/26/2019/ TZS 24 Ltd 33kv TERMINATION 31 96,270,000.00 Shenzhen SUPPLY OF 4850 SETS Star SINGLE PHASE SPLIT Instrument TYPE-AMRCOMPATIBLE ZECO/GR/28/2019/ USD 25 Co.,Ltd METERS FOR LOT 4 33 212,915.00 M/s NOBLE MOTORS SUPPLY OF 2 HARD TOP ZECO/GR/15/2020/ TZS 26 LIMITED DOUBLE CABIN 26 221,920,790.00 M/s TANZANIA CLOU ELECTRONICS COMPANY ZECO//GR/12/2020 TZS 27 LTD WITH METER BOX /24 586,657,600.00 76 HENXING SUPPLY OF SINGLE ELECTRONICS PHASE PRE-PAID METERS ZECO//GR/14/2020 TZS 28 CO. LIMITED WITH BOXES /25 740,600,000.00 ANNEX 2 TENDER AE/008/2016-17/HQ/G/9, 10 & 11; SUPPLY AND INSTALLATION OF MEDIUM AND LOW VOLTAGE LINES, DISTRIBUTION TRANSFORMERS AND CONNECTION OF CUSTOMERS IN UNELECTRIFIED RURAL AREAS IN MAINLAND TANZANIA ON TURNKEY BASIS UNDER TURNKEY PHASE III PROJECT. 1. Mollel Electrical Contractors Ltd Mr. Electrical JV 2 L & T Construction Power Transmission & Distribution 3 Misterlight Electrical Installation Co. Ltd 4 Shenzhen Farad Electric Co. Ltd and Henan Kosen Cable Co. Ltd 5 China Railway Construction Electrification Bureau Group Co. Ltd 6 IZEW Engineering and Investments 7 AR Electrickelectronikenerji 8 JV Future Century Limited Mawanjeni Ltd 9 Hebei Water Conservancy Engineering Bureau JV Everwell Cable Engineering 10 Nanjing Daji Steel Tower Manufacturing Co. Ltd 11 XJ Group Corporation JV State Grid 12 Electro Mechanical JV ElectriPlan & CJ Technology Ltd 13 Sengerema Eng Group Ltd 14 JV Radi Service Ltd Njarita Contractor Ltd & Aguila Contractor Ltd 15 Sinotec 16 China Henan International Cooperation Group Co. Ltd (CHICO) 17 CICC (Beijing) Industrial & Commercial Co. Ltd JV Intercity 18 CITCC(Tanzania) Ltd 19 Electrical and Electronics Co. Ltd JV Shanghai Electric Power T & D Engineering 20 Burhani Enginers Ltd 21 JV & Liaoning Xuyanqi Electric co. Limited & GRM Technical Traders Ltd 22 Technical Service By the Professionals (S.T.O.P) 23 Qingdao Installation & Construction Co. Ltd 24 Xinjiang Electric Power Construction Co. Ltd 25 Centaur Link Technical Services 26 SAE Power Lines 77 27 JV Teram Electromechanical Liang, Tongla 28 CICC (Beijing) Industrial & Commercial Co. 29 VC (T) JV PowerGen & TD Limited (T)& Viteg 30 Elsewedy Electric 31 Mtegha Group Ltd 32 Future Century Limited 33 Nari Group Corporation 34 Ultimate Dynamic 35 Ngogo Engineering Ltd 36 Brulli Entergia 37 Azenco JSC 38 Peak Traders Ltd 39 China Machinery Industry Construction Group Inc 40 Silo Power Limited 41 JV Mnkanda Electrical Services Ltd & China Huang Construction 42 Northern Engineering Works Ltd 43 Miles Solutions Co. Ltd 44 Sengerema Engineering Group Ltd JV VICTECH Limited 45 LCG JV QUINST-9 46 Gopa Contractor Tanzania Limited 47 Power Magic Electrical Suppliers Co. Ltd (PESUCO) 48 Harbin Langsung Electric Company Limited Starpeco Limited JV 49 Kunming Engineering Corporation Tanzania Limited, 50 Africon Engineering Limited 51 Salem Construction Ltd Dekan and Osuja Electrical JV 52 JV RZ Electrical Tech Ltd Quandg win Cable 53 Pivotech Co. Ltd 54 JV Empowerment Service Ltd & Shenyang Tiankun Investment Co. Limited 55 Kikim Contractors Limited 56 JV Chage Engineering Work Ltd & ZRD 57 STEG International Services 58 China National Cable Engineering Corporation 59 Louice Electrical Ltd 60 JV Pomy Engineering Co. Ltd, Intercity Builders Ltd & Octopas Engineering Ltd 61 DERM Electrics Ltd (A) 61 Energy Services Ltd JV Dynamic Engineering Systems Company Ltd (B) 62 Mufindi Power Service Ltd JV Hegy Engineering Limited 63 JV Radi Service Ltd FELO Investment 64 Al-Hatimy Developers Ltd 65 Nipo Group Ltd 66 Ok Electrical & Electronics Services Ltd 67 Thabile Engineering (TKRBM) 78 68 TBEA Deyang Cable Co. Ltd 69 JV Quality Extended Enterprises Ltd & Giza Cable Industries 70 Tetra Technical Services Ltd 71 Taichang Construction Co. Ltd 72 ELTEL Networks AB 73 Mohan Energy Corporation 74 National Contracting Co. Ltd ( NCC) 75 Nakuroi Investment 76 Power Group Technologies Ltd Partner 77 Hebei Water Conservancy Engineering Bureau 78 LTL Project (Pvt) Project, 79 JV MF Electrical Engineering Ltd & GESAP Engineering 80 DB Shapriya Engineering & Construction 81 China Gezhouba Group Co. Ltd 82 Action Construction Equipment Ltd 83 ABB 84 ERSAM Glavanise Enerji Superteck 85 Angelique International Limited 86 Hari Singh and Sons Limited 87 A2Z Infra Engineering Limited 88 Jaguar Overseas Limited 89 Hangzhou Qiantag River Electric Co. Ltd 90 Jacobsen Electro AS 91 JV Jandu Plumbers Ltd & E Electrical 92 Fountain Technologies Ltd 93 JV Pomy & Octopas Engineering Ltd 94 Powerchina Guizhou Engineering Corporation 95 PowerAfrica (U) Ltd 96 Bajaj Electrical Ltd 97 SHYAMA Power India Limited 98 EIPL-LE Joint venture JV 99 JV Joe’s Electrical Ltd, AT & C Pty Ltd & L’s Solutions Ltd 10 JV MBH Power Ltd & Shreem Electrical Ltd 0 10 BES (Europe) 1 10 C & G Andijes Group Limited 2 10 JV DOTT Service & 3 10 China National Electric Engineering Co. Ltd 4 10 CCC International Engineering Nigeria Limited 5 10 Etern-CCCE-HEI Consortium 6 79 10 Poti Global Services Limited 7 10 Shanz Powertechs PVT. Ltd and Ms Yash Exports 8 10 Central Electricals International Ltd 9 11 Ferdsult Engineering Services Ltd 0 11 Namis Corporate Ltd 1 11 Ningbo Sanxing Smart Electric Co. Ltd 2 11 State Grid Electrical & Technical Work Ltd 3 11 JV CCC (Beijing) Industrial and Commercial Co. Shandong Zhaowei 4 Steel Tower Co. Ltd 11 Gammon 5 11 Urban & Rural Engineering Ltd 6 11 TATA Projects Limited 7 11 JV White City International Contractors Limited 8 11 Sinohydro Corporation Limited 9 12 Fujian Electric Power Engineering Company (FEPEC) 0 12 XiangJiang Electric Power Construction Co. Ltd 1 &L as t 80 PROCUREMENT Tanzania : Zanzibar Energy Sector Transformation and Access Project PLAN General Information Country: Tanzania 2021-07-26 Bank’s Approval Date of the Original Procurement Plan: 2022-06-21 Revised Plan Date(s): (comma delineated, leave blank if none) Project ID: P169561 GPN Date: Project Name: Zanzibar Energy Sector Transformation and Access Project Loan / Credit No: IDA / 68970 Zanzibar Electricity Corporation 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$) ) for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned TZ-ZECO-240100-CW-RFB / Request for Bids - Design, supply and installatio 2. Grid modernization and A Open - Internationa Single Stage - One E Works (without pr 25,000,000.0 Pending Imp 2024-11-2 n of the proposed 132kv bac IDA / 68970 Prior Request for Bids 0.00 2021-08-03 2021-08-08 2021-09-19 2021-10-19 2021-11-23 ccess Scale-up l nvelope equalification) SP 0 lementation 4 kbone transmission substatio D n at Welezo, Matemwe and M akunduchi TZ-ZECO-240098-CW-RFB / Request for Bids - Design, supply and installatio 2. Grid modernization and A Open - Internationa Single Stage - One E Works (without pr 16,000,000.0 Pending Imp 2024-11-2 IDA / 68970 Prior Request for Bids 0.00 2021-08-03 2021-08-08 2021-09-19 2021-10-19 2021-11-23 n of the proposed 132kv bac ccess Scale-up l nvelope equalification) SP 0 lementation 4 kbone transmission line infra D structure GOODS Activity Reference No. / Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Description Component Review Type Method and Recommendation Signed Contract Contract Completion o. h cess (Y/N) ount (US$) (US$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual TZ-ZECO-295252-GO-RFQ / 1. Renewable Energy and St Request for Quota Single Stage - One E Pending Impl Supply of Two Units Of Motor IDA / 68970 orage Infrastructure Develop Post Limited 120,000.00 0.00 2022-05-21 2022-07-16 2023-01-12 tions nvelope ementation Vehicle (Pick Up Double Cabi ment n) TZ-ZECO-297872-GO-RFQ / P 1. Renewable Energy and St Request for Quota Single Stage - One E Pending Impl rocurement of ICT Equipment IDA / 68970 orage Infrastructure Develop Post Limited 65,000.00 0.00 2022-06-06 2022-07-15 2022-07-29 tions nvelope ementation and its accessories ment NON CONSULTING SERVICES Activity Reference No. / Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Description Component Review Type Method and Recommendation Signed Contract Contract Completion o. h cess (Y/N) ount (US$) (US$) atus Documents ation Report ent / Justification Notice / Invitation s Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual CONSULTING FIRMS Activity Reference No. / Combined Evaluation Loan / Credit N Market Approac Contract Type Estimated Amo Actual Amount Expression of Interest Short List and Draft R Request for Proposals Opening of Technical Evaluation of Technic Description Component Review Type Method Process Status Terms of Reference Report and Draft Neg Signed Contract Contract Completion o. h unt (US$) (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 TZ-ZECO-239036-CS-QCBS / consultancy services for supe 2. Grid modernization and A Quality And Cost- Open - Internationa Under Implement rvision and monitoring of the IDA / 68970 Prior 1,100,000.00 0.00 2021-07-19 2021-10-11 2021-08-09 2021-12-23 2021-09-22 2021-10-20 2021-11-19 2021-12-24 2022-01-28 2026-07-21 ccess Scale-up Based Selection l ation 132kv backbone transmissio n and substation infrastructu re works TZ-ZECO-239038-CS-QCBS / 1. Renewable Energy and St Quality And Cost- Open - Internationa Under Implement consultancy services for safe IDA / 68970 orage Infrastructure Develop Post 500,000.00 0.00 2021-08-08 2021-10-22 2021-08-29 2021-10-12 2021-11-09 2021-12-09 2022-01-13 2022-02-17 2023-02-17 Based Selection l ation guards implementation supp ment ort to ZECO TZ-ZECO-239045-CS-QCBS / consultancy services for desi 1. Renewable Energy and St Quality And Cost- Open - Internationa Under Implement gn, procurement support and IDA / 68970 orage Infrastructure Develop Prior 1,200,000.00 0.00 2021-12-06 2021-10-12 2021-12-27 2021-11-19 2022-02-09 2022-03-09 2022-04-08 2022-05-13 2022-06-17 2026-06-18 Based Selection l ation supervision of the solar PV, g ment eneration, plant and battery energy system (BESS) TZ-ZECO-254935-CS-QCBS / Consultancy Services for Res 2. Grid modernization and A Quality And Cost- IDA / 68970 Post Open - National 400,000.00 0.00 Canceled 2021-09-28 2021-10-05 2021-10-19 2021-12-02 2021-12-30 2022-01-29 2022-03-05 2022-04-09 2023-04-09 ettlement Action Plan Imple ccess Scale-up Based Selection mentation Monitoring - NGO TZ-ZECO-253715-CS-QCBS / Consultancy services for con 2. Grid modernization and A Consultant Qualifi Open - Internationa Under Implement ducting a Birds and Bats Stu IDA / 68970 Post 200,000.00 0.00 2021-10-04 2021-10-02 2021-10-25 2021-11-02 2021-12-08 2022-01-07 2022-02-11 2022-08-10 ccess Scale-up cation Selection l ation dy along the proposed 132 k V Backbone Transmission Lin e Route in Unguja TZ-ZECO-263017-CS-QCBS / Consultancy Services for Des 2. Grid modernization and A Quality And Cost- Open - Internationa IDA / 68970 Prior 1,000,000.00 0.00 Under Review 2021-11-18 2021-11-24 2021-12-09 2021-12-15 2022-01-22 2022-02-19 2022-03-21 2022-04-25 2022-05-30 2025-05-31 ign, Procurement Support an ccess Scale-up Based Selection l d Supervision of SCADA/EMS System 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 TZ-ZECO-240121-CS-INDV / i 1. Renewable Energy and St Individual Consult Under Implement ndividual consultant; assista IDA / 68970 orage Infrastructure Develop Post Open 288,000.00 0.00 2021-08-18 2021-08-05 2021-10-06 2021-10-27 2021-12-01 2024-12-02 ant Selection ation nt project manager for ZECO ment PIU TZ-ZECO-240122-CS-INDV / i 1. Renewable Energy and St Individual Consult Under Implement ndividual consultant; procure IDA / 68970 orage Infrastructure Develop Post Open 216,000.00 0.00 2021-06-28 2021-08-04 2021-08-16 2021-11-10 2021-09-06 2021-10-11 2024-10-12 ant Selection ation ment specialist for ZECO IU ment TZ-ZECO-240125-CS-INDV / i 1. Renewable Energy and St Individual Consult Under Implement ndividual consultant; social s IDA / 68970 orage Infrastructure Develop Post Open 180,000.00 0.00 2021-06-28 2021-08-05 2021-08-16 2021-09-06 2021-10-11 2024-10-12 ant Selection ation afeguard specialist for ZECO ment IU Page 1 TZ-ZECO-240120-CS-INDV / i 1. Renewable Energy and St Individual Consult Under Implement ndividual consultant; health IDA / 68970 orage Infrastructure Develop Post Open 180,000.00 0.00 2021-06-28 2021-08-06 2021-08-16 2021-11-10 2021-09-06 2021-10-11 2024-10-12 ant Selection ation and safety specialist for ZEC ment O IU TZ-ZECO-281459-CS-INDV / I 1. Renewable Energy and St Individual Consult Under Implement ndividual Consultant; Gender IDA / 68970 orage Infrastructure Develop Post Open 216,000.00 0.00 2022-03-05 2022-04-01 2022-04-23 2022-05-14 2022-06-18 2025-07-02 ant Selection ation Specialist for ZECO IU ment Page 2