Electricity of Mozambique (EDM) PROJECT PROCUREMENT STRATEGY FOR DEVELOPMENT (PPSD) SUSTAINABLE ENERGY AND BROADBAND ACCESS IN RURAL MOZAMBIQUE PROJECT September 2nd, 2021 EDM_PPSD 2021 Table of Contents TABLE OF CONTENTS .............................................................................................II 1. PROJECT OVERVIEW ..........................................................................................1 2. CLIENT CAPABILITY AND PIU ASSESSMENT .........................................................5 3. MARKET APPROACH ..........................................................................................5 4. RECOMMENDED PROCUREMENT APPROACH FOR THE PROJECT...........................10 |Page ii EDM_PPSD 2021 1. Project Overview Country: Mozambique Full Project Name: SUSTAINABLE ENERGY AND BROADBAND ACCESS IN RURAL MOZAMBIQUE PROJECT (ProEnergia+) Total Finance ($): 180 MUSD (Components 1 and 2 only) Project Period: 6 Years Project Number: P175295 Key Results indicators Component 1 key indicators: • 1.4 million people provided with new or improved electricity services • 400 public facilities provided with electricity services • 400 enterprises with access to electricity services • New equipment for emergency response Component 2 key indicators: • Incorporation of a new ERP • Installation of 2.5 million energy efficient bulbs Project Development Increase Access to energy and broadband services Objectives: in project areas and strengthen operational performance of the electric utility Implementing Agencies: - Ministry of Mineral Resources and Energy (MIREME) - Electricidade de Moçambique (EDM); - Fundo de Energia (FUNAE); - Ministério dos Transportes e Comunicação (MTC) and Instituto Nacional de Comunicações (INCM). Summary of Project Development Objectives 1.PDO The Project Development Objective (PDO) is to achieve 100% electrification in the country by 2030, broadband services and strengthen the financial performance of the power sector. 1|Page EDM_PPSD 2021 The high growth of the cities and rural villages along the country force EDM to design a program to support by means of densification of electricity connections on dwellings, small business centers including grid extension and off grid infrastructures. Such program will directly contribute to the socio-economic development of Mozambique by providing electricity services for poor households in rural and urban areas, enabling opportunities to study and work, contributing to raising quality of life and improving safety at night and stimulating economic activity. 2.Project Beneficiaries This project will beneficiary all potential consumers and small business centers which are nearby existing distribution network (In the vicinity of the existing networks with spare capacity) and also will contribute to reduce technical and no technical losses in EDM, improve transparency in corporate management and improve financial performance of EDM. Table 1: Project Components Estimated cost Procurement Component Activity arrangement (MUSD) Component 1 – Sub- Supply of Material and Traditional component 1a - Activity 1 Equipment 70 Component 1- Sub- component Supply and Installation Traditional 1a - Activity 2 works 76 Component 1 – Sub- component Design and 1a - Activity 3 Supervision of Works 4 Traditional Component 1 Sub- Supply of Material and component 1b Equipment 5 Traditional Component 2 Improve of EDM Sub- operational 20 component 2a performance Traditional Component 2 Energy efficiency Sub- 10 component 2b Traditional 2|Page EDM_PPSD 2021 Component 3 Off-Grid solutions for Sub- electricity 25 Component 3a Traditional Component 3 Clean cooking Sub- solutions 10 Component 3b Traditional Component 3 Energy services for Sub- IDP’s and host 5 Component 3c communities Traditional Broadband Access for Component 4 Underserved Areas 10 and Target Groups Traditional Component 5 Capacity building and Sub- policy enhancement to 5 Component 5a MIREME Traditional Component 5 TA for policy Sub- enhancement and 3 Traditional Component 5b capacity building for FUNAE Component 5 Implementation Sub- support and capacity building for 4 Traditional Component 5c EDM Component 5 Implementation Sub- support and capacity 1 Traditional Component 5d building for MTC 243 Total Table 2: Supply Positioning (SFRA) High Hig h Vulnerability Risk or Strategic Security Strategic Critical Improvement of EDM’s Improvement of EDM operational performance operational performance Energy efficient lighting Supply of Transformers, Insulators, LV panels, Poles, Cables & Conductors, Meters and Accessories 3|Page EDM_PPSD 2021 Tactical Acquisition Tactical Advantage Design and Supervision of Installation Services divided Works into two packages into 7 Lots Low Estimated to Cost / Value Hig h Pestel Analysis Political National procurement legislation contains same fragilities regarding confidentiality on bidding of information during standstill period Recent changes in legislation for hiring of foreign citizens will be enforced with greater vigour with respect to EPC contractors and may increase the risk of delays in mobilisation times for construction work The project is highly likely to get exemptions from customer duties Same focus of instability in northern province of Cabo Delgado Province due same terrorist attacks Economical The country is prone to high inflation rate and exchange rate No availability of local manufacturers and suppliers of equipment and material While the Metical has steadily appreciated against the USD from a weak base in previous years, Government monetary policy, together with a view that the Metical is still overvalued, may cause the Metical to depreciate if there are any market “shocks” either locally or internationally. This may result in a preference for EPC contractors to quote local content in a major currency. 4|Page EDM_PPSD 2021 Legal Contract approval process is lengthy and complex Decree 37/2016 (Hiring of Foreign Citizens) was introduced in November 2016 with the aim of reducing local unemployment by promoting the hiring of Mozambique citizens. The regulation requires that foreign workers in Mozambique meet minimum qualification and professional skills requirements for the position to be filled and that there are no other suitably qualified local employees for that position (demonstrated by a certificates of qualification and equivalence with the latter being issued in Mozambique) Social Social impact is positive in terms attracting accessibility of electricity and there for improvement of quality of life Environmental In the coastal areas the level of corrosion is very high; In the vicinity of river banks the flood risk are high Using bear conductor in this project which covers high density areas with many trees in roads and streets will imply cutting many trees in all line corridor to avoid power cut out (imply using wide corridor) In certain swamp areas the use of wood poles will have influence on the life time of the lines Technology To get good quality of material and equipment is very challenging Considering high density of trees where the lines will cause high environmental impact on the population trees 2. Client Capability and PIU Assessment Experience The client and PIU have high experience on implementing similar projects. however, given the high volume of works, there is a need to add more staff to strength the capacity in order to achieve the timely completion of the project of this challenge project. Need for hands-on support 5|Page EDM_PPSD 2021 Given the uniqueness and high challenges of the project, there is a need for banks support to train the additional staff special the young professional to improve their contribution to the PIU. Contract management capability and capacity The PIU have high capacity in contract management, however in order to increase capability, there is a need to add more staff to strength the capacity in order to cater for the anticipated high volume of contracts. Complaints management and dispute resolution systems The national procurement legislation has already a clear procedure for bidders to submit their complaints to various levels of public institutions, which have been followed by the client in all cases. Key conclusions The PIU based on the previous experience with additional staff and exchange of experience with other succeed utilities can handle successfully this procurement strategy process. 3. Market Approach In previous electrification projects EDM has built experience with both Engineering, Procurement and Construction (EPC) and separate Supply and Installation contracts. For the ProEnergia Plus project, EDM has chosen to follow the same procurement strategy adopted in the ProEnergia Project (P165453), this is, purchasing materials and equipment apart from the works contracts. This strategy is preferred because of the gains recently seen on the ProEnergia Project. EDM achieved savings of approximately 40% per connection when they purchased materials themselves versus their previous EPC contracts. Apart from lower prices, other benefits include the speed delivery and the ability to select the delivery points. This provides additional flexibility to EDM in terms of material handling and control of the material suppliers. The nature of the works proposed requires simple engineering and design works, there are repetitive and small installations. The level of technical complexity is low. For this reason, the installation works can be carried out by non-specialized teams with basic equipment and tools. This favors contracting smaller local firms which can quickly deploy man-power to the required locations, rather than large EPC firms who are better placed to conduct large and complex tasks with internationally experienced man-power. Over the past 3 years EDM has built the capacity in terms of human resources, equipment and software to manage multiple supply and installation contracts at the same time. The virtual warehouses created under the warehouse module of the ERP (GIAF) has served to virtually monitor the entrance and exit of materials, giving EDM complete oversight of material management. EDM has also recruited a logistics specialist to coordinate the arrival and distribution of materials. In addition, EDM has contracted a supervision engineer who helps to manage the activities on site. To date, there have been lessons learnt from this experience, in particular the need to prepare warehouses before the arrival 6|Page EDM_PPSD 2021 of materials. However, there are strong positive indications that this is a successful strategy for EDM to follow in the proposed project. Under Component 2, EDM will purchase an Enterprise Resource Planning System. The ERP to be installed within EDM will provide management information systems that support operations and key business areas of the company as single buyer. Additional technical support leading to the identification of full-fledged management improvement plans for the power companies is envisaged under subsequent phases of the Programmatic TA. While EDM’s existing ERP was provided by INDRA (a global software company based in Spain), the new system will be competitively procured through an open international process. System specifications are under preparation with the support of a specialized consultant recruited by EDM under the ongoing PERIP project, financed by the World Bank. Also under Component 2, EDM will procure energy efficient light bulbs for public institutions and EDM’s own installations. This is aimed at reducing the electricity consumption of customers who have difficulties in paying for their monthly consumption. Procurement of these bulbs and their installation will be done through an open international procurement process. Considering the size of the market globally, it is expected that most bidders will come from Asia and potentially South Africa, where the energy efficiency technologies are more developed. These suppliers of bulbs can team up with local contractors who would be responsible for installation of new bulbs and environmentally friendly disposal of the older bulbls. Table 3: Project SWOT Analysis Strengths Weakness Challenges • given the high social and • Given the high volume the procurement and all political impact, the project management activities there are need to project has high support increase number of staff on PIU. from the governmental • The new staff to be added to PIU need to be trained authority in order to have capacity to process procurement • High experience of the and project management activities with efficiency. PIU and the client in • Risk of theft of equipment and material from the Procurement, contract warehouse. and overall Project • Risk of delay in mobilization of warehouse from the management installation contractors. 7|Page EDM_PPSD 2021 • the client knows well the • Risk of misuse or wrong distribution of material and electrification business equipment by the construction contractors. than anyone else in the • Risk to not have sufficient responsiveness installation country contractors. • there is an availability of • Contractors do not have resources to work in technical staff to multiple locations causing delays to the project support implementation • Customs clearance causes delays of the project • Delays caused by lengthy bid evaluation • New low-cost • Delays caused rejection of contractor´s applications distribution standards for certificates of equivalence for foreign workers. • Power outages delay construction programme Opportunities Threats • increase of revenue to • pressure from the government to expedite the project the client due to upcoming electoral process • improve the image of • delay in delivering of key material and equipment may the client among the delay the all project public and government • low quality key material and equipment may impact • increase of jobs the quality of the project • improve of quality of life • focus of instability in north province of Cabo Delgado to the people Province due same terrorist attacks • Reduction of losses Table 4: Procurement Risk Analysis Overall Procurement Risk Rating: Substantial Risk A. B Description of Risk Description Overall proposed Owner Risk Likelihoo Impac mitigation Rating d t (A*B) Ratin Rating g 10 5 2 External staff must PIU Proj. Dir (Medium) be procured Given the high volume of procurement and overall project management 8|Page EDM_PPSD 2021 activities there is need to increase number of staff on PIU. The new staff to 5 2 PIU PM Need to identify be added to PIU the training needs need to be 10 and trained in (Medium) order to have training plan need capacity to to be prepared process procurement and project management activities with efficiency. Theft of 20 4 5 Contractors must PIU PM equipment and have security material from (High) services and the warehouse. insurance for the warehouse. Engagement of storage manager from the supervision consultant to help monitoring the use of material 12 3 4 Start the PIU PM Risk of delay in (Medium) procurement mobilization of process with warehouse from installation BID the installations first contractors. 9|Page EDM_PPSD 2021 10 2.5 4 Engagement of PIU PM (Medium) supervision Mis-application consultant to of material and inspect equipment by the quality of the construction material contractors. and the installation works Risk to not have 20 5 4 Advertise in the PIU PM sufficient regional responsiveness (High) newspaper, installation promote contractors. conference meeting with CTA to inform about the project and opportunity for locals company’s requirements Contractors do 16 4 4 Include que PIU PM not have (Medium) qualification resources to requirements in work in multiple BID locations causing delays to the project. Customs 20 5 4 Steercom clearance Appoint PMU (High) logistics manager. causes delays. Materials/equipme nt tracking to be implemented Delays caused 14 3.5 4 Roles and PIU PM by lengthy bid (Medium) responsibilities to evaluation. be defined and sequence of BIDs to be established in procurement plan 10 | P a g e EDM_PPSD 2021 Delays caused 20 4 5 RFB to approach PIU Proj. Dir rejection of the contractor´s (High) Ministry of Labour applications for and Home affairs working visas to accelerate the for foreign approval of workers. working visas. Power 3 6 Contractor to PIU PM outages 18 source own delay construction construction (High) power and to have programme. contingency plan. Pressure from 12 12 1 Maximize Steercom the government (Medium) involvement for to expedite the the government on project due to mitigating the upcoming identified electoral constrains process. such as: exception on Customs duties, contractual approval processes. Delay in 20 4 5 Contractual PIU PM delivering of penalties must be key material (High) addressed in and equipment suppliers may delay contracts. the all project. Low quality key 20 2 10 Strong PIU PM material and specification and equipment may (High) inspection during impact the manufacturing. quality of the project. 11 | P a g e EDM_PPSD 2021 Focus of 10 5 2 Steercom instability in (Medium) Remove the north province conflict zone (north of Cabo of Cabo Delgado Delgado province) from the Province due areas to electrify same terrorist when the conflict attacks. still exist. 4. Recommended Procurement Approach for the Project 4.1 Component 1 4.1.1 Supply of Transformers and LV panels • Contract and Estimated Cost: 9.3 MUSD • Procurement Approach: Since there is no local manufacturer for the majority of material and equipment, an open international approach shall be applied to attract a wide range of manufacturers and suppliers from the international market. Attribute Selected arrangement Justification Summary/Logic Specifications Conformance The PIU will already have specifications available and contractor must fulfil with them Sustainability Yes Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Supplier Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no special (Terms and conditions Conditions) 12 | P a g e EDM_PPSD 2021 Selection Requests for Bids (RFB) Method Selection NA Arrangement Market A. Type of Competition Approach 1. Open 2. International B. Number of Envelopes/Stages 1. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.1.2 Supply of Poles • Contract and Estimated Cost: 15.2 MUSD • Procurement Approach: Since there is no local manufacturer for the majority of material and equipment, an open international approach shall be applied to attract a wide range of manufacturers and suppliers from the international market. Attribute Selected arrangement Justification Summary/Logic Specifications Conformance The PIU will already have specifications available and contractor must fulfil with them Sustainability Yes Requirements 13 | P a g e EDM_PPSD 2021 Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Supplier Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no special (Terms and conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement Market C. Type of Competition Approach 3. Open 4. International D.Number of Envelopes/Stages 2. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.1.3 Supply of Cables and Conductor • Contract and Estimated Cost: 19.4 MUSD • Procurement Approach: 14 | P a g e EDM_PPSD 2021 Since there is no local manufacturer for the majority of material and equipment, an open international approach shall be applied to attract a wide range of manufacturers and suppliers from the international market. Attribute Selected arrangement Justification Summary/Logic Specifications Conformance The PIU will already have specifications available and contractor must fulfil with them Sustainability Yes Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Supplier Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no special (Terms and conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement Market E. Type of Competition Approach 5. Open 6. International F. Number of Envelopes/Stages 3. Single Envelope Pre / Post Pre-Qualification Qualification 15 | P a g e EDM_PPSD 2021 Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.1.4 Supply of Meter • Contract and Estimated Cost: 7.5 MUSD • Procurement Approach: Since there is no local manufacturer for the majority of material and equipment, an open international approach shall be applied to attract a wide range of manufacturers and suppliers from the international market. Attribute Selected arrangement Justification Summary/Logic Specifications Conformance The PIU will already have specifications available and contractor must fulfil with them Sustainability Yes Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Supplier Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no special (Terms and conditions Conditions) Selection Requests for Bids (RFB) Method 16 | P a g e EDM_PPSD 2021 Selection NA Arrangement Market G. Type of Competition Approach 7. Open 8. International H. Number of Envelopes/Stages 4. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.1.5. Supply of Accessories • Contract and Estimated Cost: 11.1 MUSD • Procurement Approach: Since there is no local manufacturer for the majority of material and equipment, an open international approach shall be applied to attract a wide range of manufacturers and suppliers from the international market. Attribute Selected arrangement Justification Summary/Logic Specifications Conformance The PIU will already have specifications available and contractor must fulfil with them Sustainability Yes Requirements 17 | P a g e EDM_PPSD 2021 Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Supplier Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no special (Terms and conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement Market I. Type of Competition Approach 9. Open 10. International J. Number of Envelopes/Stages 5. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.2 Component 1 – Subcomponent 2: Since this activity is not complex and consists of small repetitive works, and the local contractors have technical capacity to carry out the services, and in view to save high logistical costs from international contractors, an adequate geographical splitting of the 18 | P a g e EDM_PPSD 2021 installation activities in reasonable and accessible size shall be applied to attract the local market. Furthermore, to ensure attractiveness for the local contractors and to guarantee their conformance to the procurement procedures, the client will apply an auto reach approach whereby the local potential contractors will be invited to attend a meeting prior the bidding to be briefed on the key aspects of the bidding process. Market Analysis for Installation Contractors Currently the size of the distribution component in the country exceeded 201MUSD; this number is made up of more than 4 local contractors and 8 international. The average contract amount for the local contractors is 3.6MUSD while for international is 8.5MUSD. Proenergia National Installation Contractors Contract Name of Project Lot Contractor Amount Postos Administrativos Lot 1 TesTop 4,243,243 Postos Administrativos Lot 2 MPI 2,324,324 Construcao da 2 linha Bilene Single MPI 1,256,757 Reabilitacao da rede de distribuicao Chocas Mar Single MPI 3,445,946 Electrificação de vilas fronteiriças Fase 2 Tete e PACKAGE A TesTop Maputo 1,675,676 Electrificação de vilas fronteiriças Fase 2 Tete e PACKAGE B Engco Maputo 1,013,514 Electrificação de vilas fronteiriças Fase 2 Tete e PACKAGE C Electrotec Maputo 3,108,108 Electrificação de vilas fronteiriças Fase 2 Tete e PACKAGE D MPI Maputo 1,675,676 Electrificação de vilas fronteiriças Fase 2 Tete e PACKAGE E TesTop Maputo 1,675,676 EDAP Lot 6 Electrotec 6,000,000 Proenergia Lot 5 TesTop 13,086,91 1 AVERAGE 3,591,43 9 Proenergia International Installation Contractors 19 | P a g e EDM_PPSD 2021 Name of Project Lot Contractor Contract Amount Postos Administrativos Lote 3 SETH 4,756,757 Electrificação Rural Província de Niassa Lote 1 ANGELIQUE 9,000,000 Perip Lote 4 SETH 11,177,345 Perip Lote 5 SINOHYDRO 9,545,200 Electrificação Rural província Niassa Lote 2 ANGELIQUE 8,000,000 Electrificação Rural Vilanculos Lote 3 SETH 8,300,000 EDAP Lote 2 SETH 8,000,000 EDAP Lote 3 ANGELIQUE 11,000,000 EDAP Lote 4 SETH 8,000,000 EDAP Lote 5 SETH 7,000,000 EDAP Lote 7 SETH 6,000,000 EDAP Lote 8 SETH 5,000,000 EDAP Lote 9 ANGELIQUE 8,000,000 EDAP Lote 31 ELTEL 16,000,000 EDAP Lote 32 ELECTROTEC 2,300,000 JV ELECTROTEC Proenergia Lote 1 & VISABEIRA 12,185,139 JV ROUSANT & Proenergia Lote 2 ELEMECH 6,866,564 Proenergia Lote 3 POWERGEN 8,449,188 JV ELECTROTEC Proenergia Lote 4 & VISABEIRA 12,715,046 AVERAGE 8,541,854. 65 Although we have a large number of local contractors, only 4 are actively working in contracts of average 20 | P a g e EDM_PPSD 2021 3.5MUSD. It’s evident that their capacity its lower than the international (8.5MUSD). These numbers bring up a 33% capacity ratio for the national installation contractors and 80% for the international installation contractors from the average value of the Proenergia. From the average contract amounts for phase I, the local contractors have 61% financial capacity to be considered. The proposal from the EDM side to motivate local involvement is to redistribute the lots into 8, smaller portions that will help both local and international contractors to mobilize the teams and equipment along the work sites. Other solution is to motivate JV’s national and international wise. We expect a significant interest from international contractors, thus we intend in the workshops to emphasize solutions as JV’s between locals and subcontracting by the internationals. Furthermore, from the experience held in the implementation phase of Proenergia, some factors affected the performance of the international contractors being: • Mobilization – the timeframe to recruit and mobilize the staff was quite large and was extended due to the covid-19 restrictions that affected the entire world; • Covid-19 – the pandemic created a vast list of constraints, apart from the personal mobilization stated above, the lockdowns around the world affected the mobilization equipment and goods to country, delaying the defined chronograph. As solution, the international contractors are currently searching for local solutions for staff, materials and equipment. Market Analysis for Consultancy Services EVALUATION SCORING MATRIX Design, # Name of Consultant Country Supervision, Experience in Experience in Network & Service Working Ranki Cos Tota the Energy % Connection Conditions in ng t l Sector (A) Experien in the the Region(C ) Country (B) 1 JV NORCONSULT & EUROMOC Norway/Mozambique Very Good Very Good Very Good 2 452 91.5 19.16 2 JV SWECO/AZAROM/TECNICA ENGENHEIROS Sweden/Irland/ Very Good Good Good 1 3 95 % Mozambique 774 19.89 1 % 3 PLP Consulting Engineers (Pty) Ltd South Africa Good Good Good 4 814 88 18.43 0 % 5 JV Tractebel Engineering GmbH & Consultec Germany Good Good Good 6 426 77 16.12 4 % 6 WAPCOS Limited India Good Good Good 5 413 81.5 17.06 6 % 7 Royal HaskoningDHV Nedherlands Satisfactory Satisfactory Satisfactory 7 44.6 9.34 % From the experience of the first phase of Proenergia, 10 consultants delivered their expression of interest but only 7 were eligible to provide the proceed in the tender. From the 10 companies, 4 of them were JV between national and international companies. 21 | P a g e EDM_PPSD 2021 Therefore, no local interests were registered apart of JV which shows the lack of local capacity to tender. As proposed in the supply & installation contracts, it is proposed to redefine the packages of the tenders by reducing the size to allow local companies to tender. As it was used the Low cost Selection (LCS), although the ranking of the company is 5, they provided the lowest price for two packages. 4.2.1 Supply and Installation works Lot 1 (Maputo City, Maputo Province, Chokwe and Xai Xai delegations) • Contract and Estimated Cost: 5.84 MUSD • Procurement Approach: Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Sustainability No Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Consultant Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no additional (Terms and special conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement Market K. Type of Competition Approach 11. Open 12. International L. Number of Envelopes/Stages 6. Single Envelope 22 | P a g e EDM_PPSD 2021 Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.2.1 Supply and Installation works Lot 2 (Inhambane delegation) • Contract and Estimated Cost: 4.56 MUSD • Procurement Approach: Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Sustainability No Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Consultant Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no additional (Terms and special conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement 23 | P a g e EDM_PPSD 2021 Market M. Type of Competition Approach 13. Open 14. International N.Number of Envelopes/Stages 7. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.2.2 Supply and Installation works Lot 3 (Beira, Chimoio and Tete delegations) • Contract and Estimated Cost: 9.12 MUSD • Procurement Approach: Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Sustainability No Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Consultant Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no additional (Terms and special conditions Conditions) Selection Requests for Bids (RFB) Method 24 | P a g e EDM_PPSD 2021 Selection NA Arrangement Market O.Type of Competition Approach 15. Open 16. International P. Number of Envelopes/Stages 8. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.2.3 Supply and Installation works Lot 4 (Quelimane and Mocuba delegation) • Contract and Estimated Cost: 9.52 MUSD • Procurement Approach: Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Sustainability No Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Consultant Collaborative Relationship Price None, fixed price Adjustments 25 | P a g e EDM_PPSD 2021 Form of State any special conditions Contract of contract: no additional (Terms and special conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement Market Q. Type of Competition Approach 17. Open 18. International R. Number of Envelopes/Stages 9. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 26 | P a g e EDM_PPSD 2021 Supply and 4.2.4 Installation works Lot 5 (Nampula, Angoche and Nacala delegations) • Contract and Estimated Cost: 6.88 MUSD • Procurement Approach: Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Sustainability No Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Consultant Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no additional (Terms and special conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement Market S. Type of Competition Approach 19. Open 20. International T. Number of Envelopes/Stages 10. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method 27 | P a g e EDM_PPSD 2021 Supply and Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.2.5 Installation works Lot 6 (Pemba delegations) • Contract and Estimated Cost: 4.56 MUSD • Procurement Approach: Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Sustainability No Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Consultant Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no additional (Terms and special conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement 28 | P a g e EDM_PPSD 2021 Supply and Market U.Type of Competition Approach 21. Open 22. International V. Number of Envelopes/Stages 11. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.2.6 Installation works Lot 7 (Lichinga and Cuamba delegation) • Contract and Estimated Cost: 4.32 MUSD • Procurement Approach: Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Sustainability No Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Consultant Collaborative Relationship Price None, fixed price Adjustments 29 | P a g e EDM_PPSD 2021 Supply and Form of State any special conditions Contract of contract: no additional (Terms and special conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement Market W. Type of Competition Approach 23. Open 24. International X. Number of Envelopes/Stages 12. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 4.3 Component 3: Design and Supervision of Works • Contract and Estimated Cost: 3.1 MUSD • Procurement Approach: Considering the simplicity and repetitiveness of the design and supervision consultancy services related to small networks expansion and installation of service connections to the households and since there is enough capacity in the local market, it becomes important to encourage participation of local consultants and therefore the large 30 | P a g e EDM_PPSD 2021 national project coverage will be split into packages with reasonable geographical limitations. By applying this approach, the project will save costs which could be incurred by unnecessary engagement of international consultant. Since the assignments will be very simple and repetitive, a Least Cost Selection method (LCS) will be sufficient to select the consultant since the most complex evaluation criteria such as, detailed technical methodology and work plan will not be required in the bidding process, which will also allow to significantly save the time for tendering and evaluation. Justification Attribute Selected arrangement Summary/Logic Specifications TOR Sustainability No Requirements Contract Type A. Traditional Pricing and Lum sum for design costing Time-based contract for mechanism supervision Consultant Collaborative Relationship Price Adjustments None, fixed price Form of Contract State any special conditions of (Terms and contract: no additional special Conditions) conditions Selection Method Request for Proposals (RFP) Selection NA Arrangement Market Approach Y. Type of Competition 1.Open 2.International Z. Number of Envelopes/Stages 13. Two Envelopes Pre / Post NA Qualification Evaluation A. Least Cost Based Selection Selection (LCS) Method Evaluation of NA Costs 31 | P a g e EDM_PPSD 2021 Domestic NA Preference Rated Criteria List the type of criteria to be used (mandatory) 5. Component 2 5.1. Subcomponent B Supply and Installation works for Energy Efficient Lighting • Contract and Estimated Cost: 10 MUSD • Procurement Approach: Attribute Selected arrangement Justification Summary/Logic Specifications Conformance Sustainability No Requirements Contract Type Traditional Pricing and Schedule of Rates / costing Admeasurement mechanism Consultant Collaborative Relationship Price None, fixed price Adjustments Form of State any special conditions Contract of contract: no additional (Terms and special conditions Conditions) Selection Requests for Bids (RFB) Method Selection NA Arrangement 32 | P a g e EDM_PPSD 2021 S/N Item Estimate Market Selectio Procureme Review Expected Resp O Description d cost Approach n nt by Proposals on MUSD Method Category Bank Submission sibilit (Prior Date y / Post) COMPONENT 1 – SUBCOMPONENT 1 1. Supply of 9.3 Internation RFB Goods Prior 15th March, DEP transformer and al – Open 2022 LV panel 2. Internation RFB 20th March, Supply of poles 15.2 al – Open Goods Prior 2022 DEP 3. Internation RFB 22th March, Supply of cables 19.4 al – Open Goods Prior 2022 DEP and conductor 4. Internation RFB 30th March, Supply of meter 7.5 al – Open Goods Prior 2022 DEP 5. Internation RFB 10th April,2022 Supply of 11.1 al – Open Goods Prior DEP Accessories COMPONENT 1 – SUBCOMPONENT 2 Market AA. Type of Competition Approach 25. Open 26. International BB. Number of Envelopes/Stages 14. Single Envelope Pre / Post Pre-Qualification Qualification Evaluation NA Selection Method Evaluation of NA Costs Domestic No Preference Rated Criteria NA 33 | P a g e EDM_PPSD 2021 6. International RFB Supply and 44.4 – Open works Prior 27th March, 2022 DEP Installation works (Lot1 – 5.84; LOT 1 to 7 Lot2 – 4.56; Lot 3 - 9.12; Lot4 – 9.52; Lot5 – 6.88; Lot6 – 4.56; Lot7 – 4.32) COMPONENT 1 – SUBCOMPONENT 3 7. Supervision of QCBS Works Package 1.5 Internation Consultant Prior 20th April,2022 DEP 1 al – Open services 8. Supervision of QCBS Works Package 1.6 Internation Consultant Prior 20th April,2022 DEP 2 al – Open services COMPONENT 2 9. Energy Efficient Internation RFB works Prior 10th May, 2022 DEP Lighting 10 al – Open (Lot1 - 4.0; Lot2 – 3.0; Lot3 – 3.0) 10. Purchase of 8.0 Internation RFB Goods Prior 20th April 2022 DEP hardware al - Open computers, customization, software licensing and training for the upgrade of the ERP I. Procurement Plan for Goods and Works and non-consulting services (first 18 months). Appendix 1 Letter of Acceptance of the World Bank’s Anti-Corruption Guidelines and Sanctions Framework Date: _________________ Invitation of Bids/Proposals No.__________ To: ___________________________________________________________________________ We, along with our sub-contractors, sub-consultants, service providers, suppliers, agents (whether declared or not) consultants and personnel, acknowledge and agree to abide by the World Bank’s policy regarding Fraud and Corruption (corrupt, fraudulent, collusive, coercive, and obstructive practices), as set out and defined in the World Bank’s Anti- 34 | P a g e EDM_PPSD 2021 Corruption Guidelines1in connection with the procurement and execution of the contract (in case of award), including any amendments thereto. We declare and warrant that we, along our sub-contractors, sub-consultants, service providers, suppliers, agents (whether declared or not), consultants and personnel, , are not subject to, and are not controlled by any entity or individual that is subject to, a temporary suspension, early temporary suspension, or debarment imposed by a member of the World Bank Group, including, inter alia, a cross-debarment imposed by the World Bank Group as agreed with other international financial institutions (including multilateral development banks), or through the application of a World Bank Group finding of non- responsibility on the basis of Fraud and Corruption in connection with World Bank Group corporate procurement. Further, we are not ineligible under the laws or official regulations of [Insert name of Employer as per bidding document] or pursuant to a decision of the United Nations Security Council. We confirm our understanding of the consequences of not complying with the World Bank’s Anti-Corruption Guidelines, which may include the following: a. rejection of our Proposal/Bid for award of contract; b. in the case of award, termination of the contract, without prejudice to any other remedy for breach of contract; and c. sanctions, pursuant to the Bank’s Anti-corruption Guidelines and in accordance with its prevailing sanctions policies and procedures as set forth in the Bank’s Sanctions Framework. This may include a public declaration of ineligibility, either indefinitely or for a stated period of time, (i) to be awarded or otherwise benefit from a Bank-financed contract, financially or in any other manner;2 (ii) to be a nominated3 sub-contractor, consultant, manufacturer or supplier, or service provider of an otherwise eligible firm being awarded a Bank-financed contract; and (iii) to receive the proceeds of any loan made by the Bank or otherwise to participate further in the preparation or implementation of any Bankfinanced project. We understand that we may be declared ineligible as set out above upon: 1 Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by International Bank for Reconstruction and Development Loans and the International Development Agency Credits and Grants, dated October 15, 2006, and revised in January 2011 and July 2016, as they may be revised from time to time. 2 For the avoidance of doubt, a sanctioned party’s ineligibility to be awarded a contract shall include, without limitation, (i) applying for pre-qualification, expressing interest in a consultancy, and bidding, either directly or as a nominated sub-contractor, nominated consultant, nominated manufacturer or supplier, or nominated service provider, in respect of such contract, and (ii) entering into an addendum or amendment introducing a material modification to any existing contract. 3 A nominated sub-contractor, nominated consultant, nominated manufacturer or supplier, or nominated service provider (different names are used depending on the particular bidding document) is one which has been: (i) included by the bidder in its pre-qualification application or bid because it brings specific and critical experience and know-how that allow the bidder to meet the qualification requirements for the particular bid; or (ii) appointed by the Borrower. 35 | P a g e EDM_PPSD 2021 a. completion of World Bank Group sanctions proceedings according to its prevailing sanctions procedures; b. cross-debarment as agreed with other international financial institutions (including multilateral development banks); c. the application of a World Bank Group finding of non-responsibility on the basis of Fraud and Corruption in connection with World Bank Group corporate procurement; or d. temporary suspension or early temporary suspension in connection with an ongoing World Bank Group sanctions proceeding. For avoidance of doubt, the foregoing effects of ineligibility do not extend to a sanctioned firm’s or individual’s execution of its ongoing Bank-financed contracts (or its ongoing sub- agreements under such contracts) that are not the subject of a material modification, as determined by the Bank. We shall permit, and shall cause our sub-contractors, sub-consultants, agents (whether declared or not), personnel, consultants, service providers or suppliers, to permit the Bank to inspect4 all accounts, records, and other documents relating to the procurement process and/or contract execution (in the case of award), and to have them audited by auditors appointed by the Bank. We agree to preserve all accounts, records, and other documents (whether in hard copy or electronic format) related to the procurement and execution of the contract. Name of the Bidder/Consultant: Name of the person duly authorized to sign the Bid/Proposal on behalf of the Bidder/Consultant: Title of the person signing the Letter: 4 Inspections in this context are usually investigative (i.e., forensic) in nature: they involve fact-finding activities undertaken by the Bank or persons appointed by the Bank to address specific matters related to investigations/audits, such as evaluating the veracity of an allegation of possible Fraud and Corruption, through the appropriate mechanisms. Such activity includes but is not limited to accessing and examining a firm's or individual's financial records and information, and making copies thereof as relevant; accessing and examining any other documents, data, and information (whether in hard copy or electronic format) deemed relevant for the investigation/audit, and making copies thereof as relevant; interviewing staff and other relevant individuals; performing physical inspections and site visits; and obtaining third-party verification of information. 36 | P a g e EDM_PPSD 2021 37 | P a g e PROCUREMENT Mozambique : Sustainable Energy and Broadband Access in Rural Mozambique Project PLAN General Information Country: Mozambique 2021-10-13 Bank’s Approval Date of the Original Procurement Plan: 2022-07-26 Revised Plan Date(s): (comma delineated, leave blank if none) Project ID: P175295 GPN Date: 2021-10-06 Project Name: Sustainable Energy and Broadband Access in Rural Mozambique Project Loan / Credit No: / , IDA / D9340 Electricity of Mozambique 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$) ) for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Request for Bids - MZ-EDM-257601-CW-RFB / S On-grid Peri-urban and Rural Open - Internationa Single Stage - One E Works (without pr 44,400,000.0 Under Imple 2023-03-1 / Prior Request for Bids 0.00 2022-05-23 2022-05-28 2022-07-09 2022-08-08 2022-09-12 upply and Installation Service Grid Electrification l nvelope equalification) SP 0 mentation 1 D Request for Bids - MZ-EDM-279122-CW-RFB / S EDM operational performanc Open - Internationa Single Stage - One E Works (without pr 10,000,000.0 2022-12-1 IDA / D9340 Prior Request for Bids 0.00 Canceled 2022-02-28 2022-03-05 2022-04-16 2022-05-16 2022-06-20 upply and Installation of IMS e l nvelope equalification) SP 0 7 D MZ-EDM-286779-GO-RFB / R EDM operational performanc Open - Internationa Single Stage - One E Other (with field f 10,000,000.0 Under Imple 2023-01-2 ehabilitation and Upgrade of IDA / D9340 Prior Request for Bids 0.00 2022-04-11 2022-05-17 2022-04-16 2022-05-28 2022-06-27 2022-08-01 e l nvelope or explanation) 0 mentation 8 Network Infrastructure GOODS Activity Reference No. / Bid Evaluation Report Loan / Credit N Market Approac Procurement Pro Prequalification Estimated Am Actual Amount Process St Draft Pre-qualification Prequalification Evalu Draft Bidding Docum Specific Procurement Bidding Documents a Proposal Submission / Description Component Review Type Method and Recommendation Signed Contract Contract Completion o. h cess (Y/N) ount (US$) (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 MZ-EDM-257699-GO-RFB / S On-grid Peri-urban and Rural Open - Internationa Single Stage - One E / Prior Request for Bids 11,100,000.00 0.00 Canceled 2022-06-06 2022-06-11 2022-07-23 2022-08-22 2022-09-26 2023-03-25 upply of Accessories Grid Electrification l nvelope MZ-EDM-257701-GO-RFB / S On-grid Peri-urban and Rural Open - Internationa Single Stage - One E Under Imple / Prior Request for Bids 9,300,000.00 0.00 2022-05-30 2022-06-04 2022-07-16 2022-08-15 2022-09-19 2023-03-18 upply of Transformers and LV Grid Electrification l nvelope mentation Panels MZ-EDM-257703-GO-RFB / S On-grid Peri-urban and Rural Open - Internationa Single Stage - One E Under Revie / Prior Request for Bids 15,200,000.00 0.00 2022-05-30 2022-06-04 2022-07-16 2022-08-15 2022-09-19 2023-03-18 upply of Poles Grid Electrification l nvelope w MZ-EDM-257706-GO-RFB / S On-grid Peri-urban and Rural Open - Internationa Single Stage - One E Under Imple / Prior Request for Bids 19,400,000.00 0.00 2022-06-06 2022-06-11 2022-07-23 2022-08-22 2022-09-26 2023-03-25 upply of Cables and Conduct Grid Electrification l nvelope mentation ors MZ-EDM-257707-GO-RFB / S On-grid Peri-urban and Rural Open - Internationa Single Stage - One E Under Imple / Prior Request for Bids 7,500,000.00 0.00 2022-06-06 2022-03-17 2022-06-11 2022-03-21 2022-07-23 2022-05-20 2022-08-22 2022-09-26 2023-03-25 upply of Meters Grid Electrification l nvelope mentation MZ-EDM-282863-GO-RFB / S upply of Ready Boards, Pole On-grid Peri-urban and Rural Open - Internationa Single Stage - One E Pending Impl IDA / D9340 Prior Request for Bids 26,000,000.00 0.00 2022-03-14 2022-03-19 2022-04-30 2022-05-30 2022-07-04 2022-12-31 Top Boxes and Accessories f Grid Electrification l nvelope ementation or Service Connection MZ-EDM-282866-GO-RFB / S On-grid Peri-urban and Rural Open - Internationa Single Stage - One E Under Revie IDA / D9340 Prior Request for Bids 9,000,000.00 0.00 2022-03-31 2022-04-05 2022-05-17 2022-06-16 2022-07-21 2023-01-17 upply of MV Insulators Grid Electrification l nvelope w MZ-EDM-284609-GO-RFB / S EDM operational performanc Open - Internationa Single Stage - One E Under Imple IDA / D9340 Prior Request for Bids 10,000,000.00 0.00 2022-03-22 2022-04-29 2022-03-27 2022-05-05 2022-05-08 2022-06-07 2022-07-12 2023-01-08 upply and Installation of IMS e l nvelope mentation 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$) Notice equest for Proposals as Issued Proposals / Minutes al Proposal otiated Contract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual MZ-EDM-257611-CS-QCBS / Technical Assistance and Im Quality And Cost- Open - Internationa Under Implement / Prior 1,500,000.00 0.00 2022-05-23 2022-03-21 2022-06-13 2022-03-24 2022-07-27 2022-08-24 2022-09-23 2022-10-28 2022-12-02 2023-12-02 Supervision Works Package 1 plementation Support Based Selection l ation MZ-EDM-257613-CS-QCBS / Technical Assistance and Im Quality And Cost- Open - Internationa Under Implement / Prior 1,600,000.00 0.00 2022-05-23 2022-03-21 2022-06-13 2022-03-24 2022-07-27 2022-08-24 2022-09-23 2022-10-28 2022-12-02 2023-12-02 Supervision Works Package 2 plementation Support Based Selection l ation MZ-EDM-305863-CS-QCBS / EDM operational performanc Quality And Cost- Open - Internationa Pending Impleme IDA / D9340 Prior 500,000.00 0.00 2022-07-29 2022-08-19 2022-10-02 2022-10-30 2022-11-29 2023-01-03 2023-02-07 2024-02-07 Fiber Optic Network Commer e Based Selection l ntation cialization INDIVIDUAL CONSULTANTS Activity Reference No. / Loan / Credit N Market Approac Contract Type Estimated Amo Actual Amount Invitation to Identifie Draft Negotiated Cont Description Component Review Type Method Process Status Terms of Reference Signed Contract Contract Completion o. h unt (US$) (US$) d/Selected Consultant ract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual MZ-EDM-278406-CS-INDV / Technical Assistance and Im Individual Consult IDA / D9340 Prior Open 200,000.00 0.00 Canceled 2022-02-23 2022-02-17 2022-04-13 2022-05-04 2022-06-08 2022-12-05 Management Consultant plementation Support ant Selection Page 1