67305 PROCUREMENT PLAN (Dated Feb. 2012) I. General 1. Project information: The Government of the People’s Republic of China has received a loan in the amount of USD 147million equivalent from the International Bank for Reconstruction and Development towards the cost of the Second Shandong Environment Project (SDEPII). The development objective of the project would be to promote sustainable improvement of the environment in participating municipalities-counties of Shandong Province through (a) upgrading of (i) facilities for wastewater, solid waste, and water supply; and (ii) financial performance, efficiency, and effectiveness of wastewater, solid waste and water supply urban services; (b) replicating the GEF-supported pilot demonstration in Yantai and elsewhere in Shandong Province; and (c) setting-up of foundations for use of a carbon finance facility in the project’s solid waste components. The proposed project has following components: (a) waste water treatment and collection network in Gaomi, Zhoucun, Qixia, Weifang, Weihai, Yantai and Zaozhuang with associated river improvements in Qixia, Weifang, Zaozhuang and Zhoucun; (b) water supply in Gaomi; (c) solid waste management in Heze and Rizhao; (d) assistance with implementation of physical and institutional components, sector development and capacity building; and (e) development of septic tanks management in Yantai supported by GEF (Global Environment Facility) grant. Shandong Provincial Government is the executing agency (EA) responsible for overall management of the project. The implementation agency (IA) for each of the components is listed in the following table. No. Component Implementation Agency (IA) 1 Gaomi Water Supply and Networks of Gaomi City Water Company Water Supply and Sewerage Project 2 Zhoucun Sewer Network and River Zibo Zhoucun Urban Construction & Rehabilitation Project Development Co. Ltd 3 The Associated Pipeline Network Project Weihai Water Management Group of Sewage Treatment of Weihai City Company 4 Yantai Xin’an River Wastewater Plant Yantai Xin’an River Wastewater Second Phase Project Treatment Co. Ltd 5 Qixia Economic Development Zone Qixia City Dongsheng Water Supply Wastewater Treatment Plant Project and Drainage Co. Ltd 6 Weifang City Bailang River Environment Weifang City Three River Project Comprehensive Treatment Project Construction Development Co. Ltd 7 Heze Municipal Solid Waste Heze City Yuwa Solid Waste Treatment Comprehensive Treatment Project Co. Ltd 8 Rizhao Municipal Solid Waste Treatment Rizhao City Urban Environment Project Engineering Co. Ltd 9 Zaozhuang Wastewater Control Project Zaozhuang Yiyuan Wastewater (phase 2) Treatment and Purification Center 2. Bank’s approval Date of the procurement Plan The previous procurement plan was prepared and approved by the Bank on October 2011. This updated procurement plan is expected to be approved by the Bank on March 2012. 3. Date of General Procurement Notice: The General Procurement Notice was firstly published on UNDB & dgmarket on April 29, 2006, and then updated on March 27, 2008. 4. Period covered by this procurement plan: It covers about 18 months of the project implementation since January 2012. II. Goods and Works and Non-consulting Services 1. Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Guidelines for Procurement. As defined by the Bank team, the thresholds for applicable procurement methods will be as follow: Procurement Method Prior Review Comments Threshold 1. ICB (Goods) 4 millions RMB = 500 Equal or above this thousands US$ threshold-prior review 2. NCB (Goods) 4 millions RMB = 500 Post review thousands US$ 3. ICB (Works) 120 millions RMB = 15 Equal or above this millions US$ threshold—prior review 4. NCB (Works) 40 millions RMB = 5 Equal or above this millions US$ threshold—prior review 2. Prequalification. Prequalification will be applicable to ICB civil works contracts. 3. Reference to Project Procurement Manual: A procurement Manual was prepared by the Shandong Provincial PMO and integrated as a part of the Project Management Method of Shandong Provincial Finance Bureau, which has been officially issued to all the project cities. 4. Any Other Special Procurement Arrangements: None. 5. Remaining Procurement Packages with Methods and Time Schedule Feb 2012 1 = 6.3 Review by Expected Expected Estimated ESTIMATED BASE Contract Package Procurement Prequali Domestic Bank Bid- Starting Works CONTENT COSTS No Method - fication Preference (prior/ Opening Date of the Duration (in post) Date Works months) *106 *106 ZAOZHUANG Xisha River (Embankment - Bridges -- Sewage Pipe) ZZWWC/C4-1 13.84 NCB NO NO PRIOR 12-05-14 12-05-21 16 North Outer Ring to Junshan Road - C.W. Xisha River (Embankment - Bridges -- Sewage Pipe) ZZWWC/C4-2 7.04 NCB NO NO PRIOR 12-05-14 12-05-21 11 Junshan Road to Wenhua Road - C.W. Zaozhuang – Total Remaining Contract 20.88 Packages Shandong Provincial Financial Bureau SPFB/G1 Equipment/Software 0.05 Shopping NO NO POST 12-12-10 12-12-30 3 III. Selection of Consultants 1. Prior Review Threshold: Selection decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines Selection and Employment of Consultants: Consultants Prior Review Comments Threshold 1. Consulting Firm US$0.1 millions = RMB Y0.8 million 2. Individual US$0.05 millions = RMB Y0.4 million 2. Short list comprising entirely of national consultants: Short lists of consultants for services estimated to cost less than US $300,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 3. Consultancy Assignments with Selection Methods and Time Schedule Contract Description Estimate Selection Review Implementation Expected No. (US$ Method/ By Bank Agency Date of Million) Contract Contract B2 Training 0.05 SOE* N/A Provincial PMO N/A ,workshop C Debt 0.15 CQS Prior Provincial April 2012 Management Financial Bureau E1 Capacity 0.15 SOE* N/A Provincial N/A Building of EPB Provincial EPB (Trainings) F Capacity 0.50 SOE* N/A Provincial PMO, N/A Strengthening Project of Provincial Implementation Leaders and Agencies Project Project Owners: Training and study tours G Capacity 0.105 SOE* N/A Provincial N/A Strengthening Financial of Provincial Bureau Financial Department: Training YTWW/ Operational SOE* N/A Provincial PMO N/A GEF4 Cost 0.82 Yantai PMO YTWW/ Project 0.58 SOE* N/A Provincial PMO N/A GEF6 Promotion and Yantai PMO Training