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Procurement Management Practices for Hydropower Schemes in Nepal
- 1. -Er. Abhushan Neupane (NEC: 3173-Civil “A”) Date: 18th June,2018 (Monday) Venue: EIM Maven, Kathmandu
- 2. 1. Procurement Planning 2. Procurement Terminologies 3. Procurement Standards and Guidelines 4.Procurement Process 5. Bid Evaluation Process 6. Contract Documentation
- 3. “Failing to plan is Planning to fail” - Peter Drucker, Famous Management Guru, USA 3
- 4. There are 4 main principles: 1. Economy: Value for money - Finance Ministry’s concern 2. Efficiency: quick procurement - Project’s concern, but against the Fairness 3. Fairness: No discrimination – Bidders’ concern 4. Transparency: Bidders’ concern, Auditor’s concern All of these 4 parameters should be met 100%, but in practice it is not possible. Attempt should be to be in the nearest of this, while meeting the project’s objectives. 4
- 5. For large or multi-year projects, both of master & annual proc. plans are prepared. Annual proc. plans are prepared as per annual program & budget, but within the framework of master proc. Plan. Slicing & Packaging arrangement ◦ Slicing: Large project is sliced into smaller ones. Benefits are (1) high competition as small contractors can participate, (2) chances for small local contractors to grow, (3) short project duration. Examples – long road projects, multi-dimensional projects like Melamchi. ◦ Packaging: Small jobs can be joined in appropriate package to attract big contractors to achieve economy. Slicing & Packaging principle seems contradictory, but it is not so. Why? Take case by case decision. Note: Market study or knowledge of market is the key to successful procurement. 5
- 6. Applicable Proc. GLs is stated in the Loan Agreements. For purely GoN funded projects, applicable Proc. GLs is of the GoN. 4 main Proc. GLs are in practice in Nepal: 1. GoN – Public procurement Act, 2063; Public procurement Regulations, 2064 & SBDs issued by the PPMO. 2. World Bank (WB) – Procurement Guidelines & Consultant Guidelines. 3. Asian Development Bank (ADB) – Same 4. JICA: Very different than ADB/WB - rebidding time = only 15 minutes, 80% evaluation done during bid opening, total bid price counts not item rates, item rates are negotiated. 6
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- 8. Acceptance Compensation events Commencement date Contract Data Contractor Bid Bond Performance Bond Contractor’s Bid Contract Price Defect Notification Period Employer Initial Contract Price Intended Completion date
- 9. Site Site Investigation report Subcontractor Possession date Insurance Variation Orders Payment Certificates Taking over certificates Claims Liquidated Damage Advance Payment Retention Money Tax Deduction at Source (TDS) Price adjustment Day works Schedule
- 11. Procurement Package Selection Procurement Package Selection (Norwegian Practice)
- 13. Introduction to FIDIC RAINBOW SUITES 1. General Conditions 2. Particular Conditions 3. Guide for Procurement/ Claims handling 4. Appendix to Tender •ADB Procurement Guidelines •WB Procurement Guidelines • JICA Procurement Guidelines
- 14. Introduction to Public Procurement in Nepal • Nepal Procurement Act 2063 • Nepal Procurement Rules 2064 • Standard Bid Documents (Refer to www.ppmo.gov.np)
- 20. Prequalification Multiple stage evaluation ◦ Expression of Interest (EoI) ◦ Request for Qualification (RfQ) ◦ Request for Proposal (RfP) Single Stage evaluation ◦ Single stage – Double Envelope ( Technical +Financial) ◦ Single stage- Single Envelope
- 22. Contract Agreement Letter of Acceptance Letter of Bid Addenda/MOUs SCC/GCC Technical Specification Drawings Bill of Quantities Other documents Schedules (if any)