Procurement 1. Procurement for the Project will be carried out in accordance with the World Bank’s "Guidelines: Procurement of Goods, Works and Non-consulting Services Under IBRD Loans and IDA Credits and Grants" dated January 2011 and revised as of July, 2014 (Procurement Guidelines); and "Guidelines: Selection and Employment of Consultants Under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011 and revised as of July 2014 (Consultant Guidelines) and the provisions stipulated in the Legal Agreement (LA) and POM. The World Bank Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credit and Grants dated October 15, 2006 and revised on January 2011, would also apply. Thresholds for Procurement Methods 2. Goods: Goods and equipment estimated to cost US$1,000,000 or more would be procured through International Competitive Bidding (ICB). Goods estimated to cost less than US$1,000,000 and more than US$100,000 would be procured through National Competitive Bidding (NCB). Readily available off-the-shelf goods estimated to cost equal to or less than US$100,000 each would be procured through Shopping (SH) on the basis of at least three written quotations obtained from qualified suppliers. Direct Contracting (DC) may be used in accordance with the requirements outlined in para. 3.7 of the Procurement Guidelines. 3. Works: Works estimated to cost equal to US$5,000,000 or more would be procured through ICB. Works estimated to cost less than US$5,000,000 and equal to or more than US$200,000 would be procured through NCB. Contracts estimated to cost less than US$200,000 each would be procured through Shopping (SH) procedures on the basis of at least three written quotations obtained from qualified contractors. Direct Contracting (DC) for works may be used in accordance with the requirements outlined in para. 3.7 of the Procurement Guidelines. 4. Consultant Services: Consultancy services to be provided by consulting firms estimated to cost more than US$300,000 would be procured through Quality and Cost Based Selection (QCBS) method. Consultancy services to be provided by consulting firms estimated to cost equal to or less than US$300,000 may be procured through Consultants’ Qualifications Selection (CQS) method. Other methods such as Fixed Budget Selection (FBS), Quality Based Selection (QBS), and Least Cost Selection (LCS) shall be made available through the Legal Agreement irrespective of the amount. Individual Consultants (IC) will be selected in accordance with Section V of the Consultant Guidelines. Single Source Selection (SSS) method for firms and individuals will also be specified in the Legal Agreement. For assignments estimated to cost equal to or less than US$300,000, the shortlist may comprise only of national firms according to the paragraph 2.7 of the Consultant Guidelines. However, if foreign firms express interest, they shall be considered. 5. NCB of the Borrower may be used for procurement of goods, works and non-consulting services for the project, provided that the following provisions are complied with: (a) Entities in which the Republic of Armenia owns a majority shareholding shall not be invited to participate in tenders for the government unless they are and can be shown to be legally and financially autonomous and operate under commercial law. (b) Post-qualification criteria shall only pertain to past contract performance, financial, managerial, and technical capabilities of bidders. (c) Joint venture partners shall be jointly and severally liable for their obligations. (d) Estimated contract prices shall not be advertised. (e) Except for late bids, no bids shall be rejected at the bid opening. The opening procedures shall comply with conditions of paragraph 2.45 of the Procurement Guidelines. (f) No bids shall be rejected solely because they exceed the estimated price. Bids can be cancelled and new bids invited, only if the conditions of paragraphs 2.61–2.64 of the Procurement Guidelines are met. (g) All bid evaluation criteria shall be quantifiable in monetary terms or expressed as pass/fail criteria. (h) Without limitation to paragraph 3 of Appendix 1 to the Procurement Guidelines, advance Bank approval is required for any modifications in the contract scope/conditions during implementation. Prior Review Thresholds Type of Procurement Prior Review Threshold Goods $1,000,000 Works First ICB regardless of value and contracts equal to or above $10,000,000 and first NCB IT System & Non-Consulting $1,000,000 Services Direct Contracting* $60,000 Consulting Services (Firm) First QCBS regardless of value and contracts equal to or above $500,000 and first CQS Consulting Services (Individual) $200,000 Single Source Selection** $5,000 *Must comply with the requirements of para. 3.7 of the Procurement Guidelines. ** Must comply with the requirements of paras. 3.8-3.11 of the Consultant Guidelines. 6. All TORs are subject to the Bank’s prior review irrespective of the prior or post review status of the consulting assignment in the procurement plan. Post Review Ratio 7. Contracts not subject to Bank’s prior review will be post reviewed by Bank’s supervision missions. Procurement Plan 8. All contracts to be financed under the project, the various procurement or consultant selection methods, the estimated costs, prior review requirements, and time frame have been agreed between the Borrower and the Bank and presented in the Procurement Plan (see below). The Procurement Plan will be updated as required to reflect the actual Project implementation needs and improvements in institutional capacity. The Procurement Plan its updates or modifications, shall be subject to the Bank’s prior review and no objection before implementation. The final version of the Procurement Plan will be disclosed (without cost estimates) and posted in the Bank’s external website in accordance with paragraph 1.18 of Procurement Guidelines and paragraph 1.25 of the Consultants Guidelines, ATDF’s database, and www.procurement.am. 32. Works contracts to be procured under the project include rehabilitation of heritage hubs, construction of tourism facilities and improvement of access roads and parking areas. There is no prequalification anticipated under the project and works are to be procured using NCB procedure. 33. Consultants to be selected under the project include services for preliminary assessment of buildings to undergo rehabilitation, preparation of detailed designs for the rehabilitation of heritage hubs and author’s supervision, technical supervision of works, destination management, marketing and promotion, audit services, monitoring and evaluation, training and site management plan. UNESCO will be contracted under Single Source Selection for advisory services for cultural heritage. 34. Goods to be procured under the project include vehicles, furniture, and equipment for the rehabilitated sites and tourism facilities. 35. A General Procurement Notice (GPN) will be published in UNDB on-line and in its printed version after negotiations. Specific Procurement Notices (SPN) for all ICB packages and consulting contracts each with cost estimate above US$300,000 will also be published in the UNDB. In addition, the SPNs for civil works contracts will be provided to the Union of Builders of Armenia. Filing and Record Keeping 36. ATDF will keep complete files of all procurement packages under the project to facilitate post review and Project audit. 37. The procurement related risks are summarized in Table 3.1 below. 38. Procurement Plan Table 3.1: Summary Risk Assessment Rating of Rating of Description of Risk Mitigation Measures Risk Residual Risk Current procurement staff is not Substantial ATDF will hire additional qualified Moderate able to cope with the increased procurement staff or procurement workload under LEIDP. consultant. High turnover of procurement High ATDF will hire additional qualified Substantial staff due to low salary. procurement staff or procurement consultant. Newly procurement staff may Substantial ATDF’s procurement staff should Moderate not have sufficient knowledge continuously improve their knowledge of and experience in Bank Bank’s procurement procedures by procurement. attending training/workshops offered by the World Bank, familiarizing themselves with the Procurement and Consultant Guidelines and on-the-job training. Given the multi-stakeholder Substantial (a) Educate stakeholders about the POM Moderate environment, possibility of through ATDF’s Institutional Support unnecessary intervention and Department. (b) Ensure transparent pressures resulting in decision making based on evaluation implementation delays criteria disclosed in bidding documents and proposal documents. Inadequate capacity in the DFA Substantial (a) DFA will apply additional efforts to Moderate to prepare TORs and technical improve the technical parts of specifications and implement procurement documents and quality of Bank-financed Project. TORs for consulting services. (b) Project to finance consulting services to build capacity in the DFA. PROCUREMENT Armenia : Local Economy and Infrastructure Development Project PLAN General Information Country: Armenia Banks Approval Date of the Original Procurement Plan: 2017-03-23 Revised Plan Date(s): (comma delineated, leave blank if none) 2018-07-26 Project ID: P150327 GPN Date: Project Name: Local Economy and Infrastructure Development Project Loan / Credit No: TF / A1063, IBRD / 85720 Executing Agency(ies): Armenian Territorial Development Fund WORKS Activity Reference No. / Bid Evaluation Report Procurement Prequalification Actual Amount Process Draft Pre-qualification Prequalification Draft Bidding Document Specific Procurement Bidding Documents as Proposal Submission / Description Loan / Credit No. Component Review Type Method Market Approach and Recommendation Signed Contract Contract Completion Process (Y/N) (US$) Status Documents Evaluation Report / Justification Notice / Invitation Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual TUR-01-1 / Rehabilitation of road Heritage Hub and Tourism Single Stage - One leading to Garni Stone IBRD / 85720 Post Request for Bids Open - National 0.00 Canceled 2017-10-11 2017-10-16 2017-11-03 2017-11-13 2017-12-01 2017-12-13 2017-12-29 2018-01-10 2019-05-05 Circuit Development Envelope Symphony TUR-01-01-1 / Rehabilitation of Heritage Hub and Tourism Single Stage - One road leading to Garni Stone IBRD / 85720 Post Request for Bids Open - National 1,374,918.62 Signed 2018-02-22 2018-03-05 2018-02-27 2018-03-19 2018-03-27 2018-04-16 2018-04-26 2018-05-07 2018-06-07 2018-06-19 2019-09-30 Circuit Development Envelope Symphony TUR-06 / Rehabilitation of Road Heritage Hub and Tourism Single Stage - One Under Segment Leading to Tatev IBRD / 85720 Post Request for Bids Open - National 0.00 2018-05-11 2018-05-20 2018-05-16 2018-05-24 2018-06-13 2018-06-21 2018-07-13 2018-07-11 2018-08-24 2019-04-21 Circuit Development Envelope Implementation Monastery TUR-07 / Streets Rehabilitation of Kumayri Historical Center in Heritage Hub and Tourism Single Stage - One Under IBRD / 85720 Post Request for Bids Open - National 0.00 2018-07-16 2018-07-12 2018-07-19 2018-07-12 2018-08-16 2018-09-15 2018-10-27 2019-03-26 Gyumri Circuit Development Envelope Implementation (consist of 2 Lots) GOODS Activity Reference No. / Bid Evaluation Report Procurement Prequalification Actual Amount Process Draft Pre-qualification Prequalification Draft Bidding Document Specific Procurement Bidding Documents as Proposal Submission / Description Loan / Credit No. Component Review Type Method Market Approach and Recommendation Signed Contract Contract Completion Process (Y/N) (US$) Status Documents Evaluation Report / Justification Notice / Invitation Issued Opening / Minutes for Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual NON CONSULTING SERVICES Activity Reference No. / Bid Evaluation Report Procurement Prequalification Actual Amount Process Draft Pre-qualification Prequalification Draft Bidding Document Specific Procurement Bidding Documents as Proposal Submission / Description Loan / Credit No. Component Review Type Method Market Approach and Recommendation Signed Contract Contract Completion Process (Y/N) (US$) Status Documents Evaluation Report / Justification Notice / Invitation 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 Contract Type Actual Amount Expression of Interest Short List and Draft Request for Proposals Opening of Technical Evaluation of Technical Description Loan / Credit No. Component Review Type Method Market Approach Process Status Terms of Reference Report and Draft Signed Contract Contract Completion (US$) Notice Request for Proposals as Issued Proposals / Minutes Proposal Negotiated Contract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual PLEID C- 2.2 / Rehabilitation of Goris Central Parks ; redevelopment of the Right Bank Heritage Hub and Tourism of Goris River; restoration of Circuit Development Consultant Historical and Architectural TF / A1063 Contingent Emergency Prior Qualification Open - International N 142,629.48 Signed 2016-10-21 2016-10-14 Environment of the Central Part Response Selection of Goris and development a Institutional Development Management Model for upgraded infrastructures LPD-01 / Development of Project Design and Author's Supervision Consultant Heritage Hub and Tourism for the Rehabilitation of Road IBRD / 85720 Post Qualification Open - National 44,049.21 Signed 2017-11-22 2017-12-06 2017-12-06 2017-12-08 2018-01-10 2017-12-28 2018-01-17 2018-01-13 2018-02-07 2018-01-12 2019-06-22 Circuit Development Segment Leading to Tatev Selection Monastery Sub-project Consultant LV-01 / Detailed Measurement, Heritage Hub and Tourism IBRD / 85720 Post Qualification Open - National 686.43 Signed 2018-01-09 2018-01-09 2018-01-19 2018-01-17 2018-02-16 2018-02-16 2018-02-23 2018-02-20 2018-03-16 2018-02-23 2018-05-15 Assets Inventory and Valuation Circuit Development Selection LTS-01 / Technical supervision Consultant of construction for Rehabilitation Heritage Hub and Tourism IBRD / 85720 Post Qualification Open - National 18,385.06 Signed 2018-04-13 2018-04-09 2018-04-27 2018-04-09 2018-05-25 2018-05-04 2018-06-15 2018-05-18 2018-07-06 2018-05-18 2019-10-29 of road leading to Garni Stone Circuit Development Selection Symphony LTS-02 / Technical supervision Consultant of construction for Rehabilitation Heritage Hub and Tourism IBRD / 85720 Post Qualification Open - National 24,136.16 Signed 2018-05-17 2018-05-23 2018-05-24 2018-05-30 2018-06-21 2018-06-19 2018-07-12 2018-07-06 2018-08-02 2018-07-06 2019-03-30 of Road Segment Leading to Circuit Development Selection Tatev Monaster LTS-03 / Technical Supervision Consultant of construction for "Streets Heritage Hub and Tourism Pending IBRD / 85720 Post Qualification Open - National 0.00 2018-08-02 2018-08-16 2018-09-13 2018-10-04 2018-10-25 2019-03-24 Rehabilitation of Kumayri Circuit Development Implementation Selection Historical Center in Gyumri INDIVIDUAL CONSULTANTS Page 1