Procurement Plan (Textual Part) I. General 1. Project Information Country: Zambia Project Name: Zambia Electricity Services Access Project Project Id: P162760 Project Implementation Agency: Rural Electrification Authority (REA) and Zambia Electricity Services Cooperation (ZESCO) Date of the Procurement Plan: July 2018 2. Period Covered by this procurement plan: June 2017 to June 30,2019 II. Preamble In accordance with paragraph 5.9 of the “World Bank Procurement Regulations for IPF Borrowers” (July 2016) (“Procurement Regulations”) the Bank’s Systematic Tracking and Exchanges in Procurement (STEP) system will be used to prepare, clear and update Procurement Plans and conduct all procurement transactions for the Project. This textual part along with the Procurement Plan tables in STEP constitute the Procurement Plan for the Project. The following conditions apply to all procurement activities in the Procurement Plan. The other elements of the Procurement Plan as required under paragraph 4.4 of the Procurement Regulations are set forth in STEP. III. Bank’s Standard Procurement Documents: The Bank’s Standard Procurement Documents shall be used for all contracts subject to international competitive procurement and those contracts as specified in the Procurement Plan tables in STEP. IV. National Procurement Arrangements: In accordance with paragraph 5.3 of the Procurement Regulations, when approaching the national market (as specified in the Procurement Plan tables in STEP), the country’s own procurement procedures may be used. When the Borrower uses its own national open competitive procurement arrangements as set forth in The Zambia - Public Procurement Act, 2008, Amendment Act of 2013 and the Public Procurement Regulations, of 2013, such arrangements shall be subject to paragraph 5.4 of the Procurement Regulations and the following conditions: (the “Procurement Guidelines”), and the additional provisions in the following paragraphs: (a) Eligibility: Eligibility to participate in a procurement process and to be awarded an Association-financed contract shall be as defined under Section I of the Procurement Guidelines; accordingly, no bidder or potential bidder shall be declared ineligible for contracts financed by the Association for reasons other than those provided in Section I of the Procurement Guidelines. No restriction based on nationality of bidders and/or origin of goods shall apply, and foreign bidders shall be allowed to participate in NCB without application of restrictive conditions, such as, but not limited to, mandatory partnering or subcontracting with national entities. 1 (b) Domestic Preference: No margins of preference of any sort shall be applied in the bid evaluation. (c) Bidding Documents: Procuring entities shall use bidding documents acceptable to the Association. (d) Bid validity: An extension of bid validity, if justified by exceptional circumstances, may be requested in accordance with Appendix 1 of the Procurement Guidelines. A corresponding extension of any bid guarantee shall be required in all cases of extension of bid validity. A bidder may refuse a request for extension of bid validity without forfeiting its bid guarantee. (e) Qualification: Qualification criteria shall be clearly specified in the bidding documents. All criteria so specified, and only such specified criteria, shall be used to determine whether a bidder is qualified. Qualification shall be assessed on a “pass or fail” basis, and merit points shall not be used. Such assessment shall be based entirely upon the bidder’s or prospective bidder’s capability and resources to effectively perform the contract, taking into account objective and measurable factors, including: (i) relevant general and specific experience, and satisfactory past performance and successful completion of similar contracts over a given period; (ii) financial position; and where relevant (ii) capability of construction and/or manufacturing facilities (f) Prequalification procedures and documents acceptable to the Association shall be used for large, complex and/or specialized works. Verification of the information upon which a bidder was prequalified, including current commitments, shall be carried out at the time of contract award, along with the bidder’s capability with respect to personnel and equipment. Where pre- qualification is not used, the qualification of the bidder who is recommended for award of contract shall be assessed by post-qualification, applying the qualification criteria stated in the bidding documents. (g) Bid Evaluation: All bid evaluation criteria other than price shall be quantifiable in monetary terms. Merit points shall not be used, and no minimum point or percentage value shall be assigned to the evaluation criteria or significance of price in bid evaluation. No negotiations shall be permitted. (h) Guarantees: Guarantees shall be in the format, shall have the period of validity and shall be submitted when and as specified in the bidding documents. (i) Cost Estimates: Detailed cost estimates shall be confidential and shall not be disclosed to prospective bidders. No bids shall be rejected on the basis of comparison with the cost estimates without the Association’s prior written concurrence. (j) Rejection of bids and re-bidding: No bid shall be rejected solely because it falls outside of a predetermined price range or exceeds the estimated cost. All bids (or the sole bid if only one bid is received) shall not be rejected, the procurement process shall not be cancelled, and new bids shall not be solicited without the Association’s prior written concurrence. (k) Fraud and corruption: In accordance with the Procurement Guidelines, each bidding document and contract shall include provisions stating the Association’s policy to sanction firms or individuals found to have engaged in fraud and corruption as set forth in the Procurement Guidelines. (l) Inspection and audit rights: In accordance with the Procurement Guidelines, each bidding document and contract shall include provisions stating the Bank’s policy with respect to inspection and audit of accounts, records and other documents relating to the submission of bids and contract performance. 2 When other national procurement arrangements other than national open competitive procurement arrangements are applied by the Borrower, such arrangements shall be subject to paragraph 5.5 of the Procurement Regulations. In accordance with paragraph 5.4(c) and 5.5 of the Procurement Regulations, the request for bids/request for proposals/request for quotations document shall require that Bidders/Proposers submitting Bids/Proposals/quotations present a signed acceptance at the time of bidding, to be incorporated in any resulting contracts, confirming application of, and compliance with, the Bank’s Anti-Corruption Guidelines, including without limitation the Bank’s right to sanction and the Bank’s inspection and audit rights. The form of the Letter of Acceptance is attached in Appendix 1. V. Prequalification: Not applicable VI. Leased Assets: Not applicable VII. Procurement of Second Hand Goods: Not applicable VIII. Domestic preference as specified under paragraph 5.51 of the Procurement Regulations (Goods and Works). (a) Goods: Non- identified for now (b) Works: Non- identified for now Domestic preference is not applicable for National Open Competitive Procurement IX. Other Relevant Procurement Information X. Procurement Prior Review Thresholds (US$ millions) Type of Procurement High Substantial Moderate Low Risk Risk Risk Risk Works (including turnkey, supply & 15 installation of plant and equipment, and PPP) Goods, information technology and non- 2 consulting services Consultants: firms 0.5 Consultants: Individuals 0.3 Post Review: All contracts not subject to prior review shall be subject to post review. 3 XI. Thresholds for Procurement Approaches and Method (US$ millions) Works Goods, IT and Non-Consulting Services Shortlist of National Consultants Open Open Request Open Open Request Consulting Engineering International National for International National for Services & Quotation Quotation Construction ≥ < ≥ < Supervision ≤ ≤ 15 15 0.2 2 2 0.1 0.3 0.3 4 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-Corruption Guidelines1 in 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 1Guidelines 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. 5 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 Bank-financed project. We understand that we may be declared ineligible as set out above upon: 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 about 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: 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. 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. 6 Name of the person duly authorized to sign the Bid/Proposal on behalf of the Bidder/Consultant: Title of the person signing the Letter: 7 PROCUREMENT Zambia : Electricity Service Access Project PLAN General Information Country: Zambia Bank’s Approval Date of the Original Procurement Plan: 2018-10-05 2019-06-24 Revised Plan Date(s): (comma delineated, leave blank if none) Project ID: P162760 GPN Date: 2019-06-14 Project Name: Electricity Service Access Project Loan / Credit No: IDA / 61060 Executing Agency(ies): Zambia Electricity Supply Coorporation Limited WORKS Bid Evaluation Activity Reference No. / Draft Bidding Loan / Credit Market Procurement Prequalification Actual Amount Process Draft Pre-qualification Prequalification Specific Procurement Bidding Documents Proposal Submission / Report and Description Component Review Type Method Document / Signed Contract Contract Completion No. Approach Process (Y/N) (US$) Status Documents Evaluation Report Notice / Invitation as Issued Opening / Minutes Recommendation for Justification Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual ZESCO/ESAP/W/010/2019 / Single Stage - One ESAP Copperbelt Province IDA / 61060 Post Request for Bids Open - National 0.00 Canceled 2019-03-04 2019-03-09 2019-04-20 2019-05-20 2019-06-24 2019-12-21 Envelope Electricity Works ZESCO/ESAP/W/013/2019 / Under Single Stage - One ESAP Eastern Province IDA / 61060 Post Request for Bids Open - National 0.00 Implementati 2019-03-04 2019-03-09 2019-04-20 2019-05-20 2019-06-24 2019-12-21 Envelope Electricity Works on ZESCO/ESAP/W/014/2019 / Under Single Stage - One ESAP Luapula Province IDA / 61060 Post Request for Bids Open - National 0.00 Implementati 2019-03-04 2019-03-09 2019-04-20 2019-05-20 2019-06-24 2019-12-21 Envelope Electricity Works on ZESCO/ESAP/W/051/2019 / Construction Works For Electricity Service Access Pending Single Stage - One Project In Southern Province IDA / 61060 Post Request for Bids Open - National 0.00 Implementati 2019-06-13 2019-06-21 2019-07-19 2019-08-18 2019-09-22 2020-03-20 Envelope (Pemba, Sinazogwe, on Kazungula, Monze and Gwembe Districts) ZESCO/ESAP/W/052/2019 / Procurement of construction works for electricity service Pending Single Stage - One access project in Western IDA / 61060 Post Request for Bids Open - National 0.00 Implementati 2019-06-14 2019-06-19 2019-07-31 2019-08-30 2019-10-04 2020-04-01 Envelope Province (Kaoma, Senanga, on Limulunga and Sesheke Districts). ZESCO/ESAPW/053/2019 / Procurement of construction works for electricity service Pending access project in North- Single Stage - One IDA / 61060 Post Request for Bids Open - National 0.00 Implementati 2019-06-20 2019-06-25 2019-08-06 2019-09-05 2019-10-10 2020-04-07 Western Province (Kasempa, Envelope on Mufumbwe, Kabompo, Zambezi and Chavuma Districts). ESAP/ZESCO/W/010/2019 / Pending Single Stage - One ESAP Copperbelt Province IDA / 61060 Post Request for Bids Open - National 0.00 Implementati 2019-03-04 2019-03-09 2019-04-20 2019-05-20 2019-06-24 2019-12-21 Envelope Electricity Works on GOODS Bid Evaluation Activity Reference No. / Draft Bidding Loan / Credit Market Procurement Prequalification Actual Amount Process Draft Pre-qualification Prequalification Specific Procurement Bidding Documents Proposal Submission / Report and Description Component Review Type Method Document / Signed Contract Contract Completion No. Approach Process (Y/N) (US$) Status Documents Evaluation Report Notice / Invitation as Issued Opening / Minutes Recommendation for Justification Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Page 1 ZESCO/ESAP/GO/02/2018 / Under Request for Single Stage - One Purchase of four (4N0.) IDA / 61060 Post Open - National 0.00 Implementati 2018-11-04 2018-12-30 2019-06-28 Quotations Envelope Laptops on ZESCO/ESAP/GO/03/2018 / Under Purchase of one (1No.) Request for Single Stage - One IDA / 61060 Post Open - National 0.00 Implementati 2018-11-04 2018-12-30 2019-06-28 Heavy Duty Printer complete Quotations Envelope on with Scanner and Copier ZESCO/ESAP/GO/04/2018 / Under Request for Single Stage - One Purchase of four (4No.) IDA / 61060 Post Open - National 0.00 Implementati 2018-11-05 2018-12-31 2019-06-29 Quotations Envelope Electrician Toolkits on ZESCO/ESAP/GO/05/2018 / Under Request for Single Stage - One Purchase of five (5No.) IDA / 61060 Post Open - National 0.00 Implementati 2018-11-12 2019-01-07 2019-07-06 Quotations Envelope Cyclometers on ZESCO/ESAP/GO/001/18 / Under Supply and delivery of four Request for Single Stage - One IDA / 61060 Post Limited 0.00 Implementati 2018-11-27 2019-01-22 2019-07-21 (4No.) Motor Vehicles 4WD Quotations Envelope on Double Cabs ZESCO/ESAP/GO/006/2018 / Request for Single Stage - One IDA / 61060 Post Open - National 0.00 Canceled 2018-11-06 2019-01-01 2019-06-30 Purchase of Office Furniture Quotations Envelope ZESCO/ESAP/GO/07/2018 / Request for Single Stage - One Purchase of ten (10No.) IDA / 61060 Post Open - National 0.00 Canceled 2018-11-17 2019-01-12 2019-07-11 Quotations Envelope Wooden Filing Cabinets ZESCO/ESAP/GO/09/2018 / Request for Single Stage - One Purchase of four (4No.) IDA / 61060 Post Open - National 0.00 Canceled 2018-11-04 2018-12-30 2019-06-28 Quotations Envelope Scanners Pending ZESCO/ESAP/GO/009/2019 / Request for Single Stage - One IDA / 61060 Post Limited 0.00 Implementati 2019-02-11 2019-04-08 2019-10-05 Purchase of four Scanners Quotations Envelope on Pending ZESCO/ESAP/GO/006/2019 / Request for Single Stage - One IDA / 61060 Post Limited 0.00 Implementati 2019-02-10 2019-04-07 2019-10-04 Purchase of Office Furniture Quotations Envelope on ZESCO/ESAP/GO/007/2019 / Pending Request for Single Stage - One Purchase of Metal lockable IDA / 61060 Post Limited 0.00 Implementati 2019-02-10 2019-04-07 2019-10-04 Quotations Envelope Filing Cabinets on NON CONSULTING SERVICES Bid Evaluation Activity Reference No. / Draft Bidding Loan / Credit Market Procurement Prequalification Actual Amount Process Draft Pre-qualification Prequalification Specific Procurement Bidding Documents Proposal Submission / Report and Description Component Review Type Method Document / Signed Contract Contract Completion No. Approach Process (Y/N) (US$) Status Documents Evaluation Report Notice / Invitation as Issued Opening / Minutes Recommendation for Justification Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual ZESCO/ESAP/C/003/C3 / Pending Hire of an Advertising Agent IDA / 61060 Prior Direct Selection Direct 0.00 Implementati 2018-11-16 2018-11-21 2018-12-26 2019-06-24 Marketing and Publicity on CONSULTING FIRMS Activity Reference No. / Combined Evaluation Loan / Credit Market Contract Type Actual Amount Expression of Interest Short List and Draft Request for Proposals Opening of Technical Evaluation of Description Component Review Type Method Process Status Terms of Reference Report and Draft Signed Contract Contract Completion No. Approach (US$) Notice Request for Proposals as Issued Proposals / Minutes Technical Proposal Negotiated Contract Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Page 2 INDIVIDUAL CONSULTANTS Page 3