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 Bank’s Approval Date of the Original Procurement Plan: 2017-03-23 2019-09-15 Revised Plan Date(s): (comma delineated, leave blank if none) 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 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 TUR-01-1 / Rehabilitation Heritage Hub and Tourism Single Stage - One of road leading to Garni IBRD / 85720 Post Request for Bids Open - National 0.00 Canceled 2017-10-11 2017-10-16 2017-11-13 2017-12-13 2018-01-10 2019-05-05 Circuit Development Envelope Stone Symphony TUR-01-01-1 / Rehabilitation of road Heritage Hub and Tourism Single Stage - One IBRD / 85720 Post Request for Bids Open - National 1,374,751.66 Signed 2018-02-22 2018-02-27 2018-03-27 2018-04-26 2018-06-07 2019-09-30 leading to Garni Stone Circuit Development Envelope Symphony TUR-06 / Rehabilitation of Heritage Hub and Tourism Single Stage - One Road Segment Leading to IBRD / 85720 Post Request for Bids Open - National 1,901,802.76 Signed 2018-05-11 2018-05-16 2018-06-13 2018-07-13 2018-08-24 2019-04-21 Circuit Development Envelope Tatev Monastery TUR-07 / Streets Rehabilitation of Kumayri Heritage Hub and Tourism Single Stage - One IBRD / 85720 Post Request for Bids Open - National 2,108,291.78 Signed 2018-07-16 2018-07-19 2018-08-16 2018-09-15 2018-10-27 2019-03-26 Historical Center in Gyumri Circuit Development Envelope (consist of 2 Lots) TUR-08 / Reconstruction of Heritage Hub and Tourism Single Stage - One the Road Leading to IBRD / 85720 Post Request for Bids Open - National 412,795.18 Signed 2018-11-05 2018-11-10 2018-12-08 2019-01-07 2019-02-18 2019-07-18 Circuit Development Envelope "Sochut" Dendropark TUR-02-01 / Improvement Under Heritage Hub and Tourism Single Stage - One of Khor Virap Monastery IBRD / 85720 Post Request for Bids Open - National 166,524.48 Implementati 2019-07-26 2019-07-29 2019-08-26 2019-09-25 2019-11-06 2020-05-04 Circuit Development Envelope Area 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$) Status Documents Evaluation Report Notice / Invitation as Issued Opening / Minutes Recommendation for Justification Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual NON CONSULTING SERVICES Bid Evaluation Activity Reference No. / Draft Bidding Loan / Credit Market Procurement Prequalification Actual Amount Process Draft Pre-qualification Prequalification Specific Procurement Bidding Documents Proposal Submission / Report and Description Component Review Type Method Document / Signed Contract Contract Completion No. Approach Process (Y/N) (US$) 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 CONSULTING FIRMS Page 1 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 PLEID C- 2.2 / Rehabilitation of Goris Central Parks ; redevelopment of the Right Bank of Goris River; Consultant Heritage Hub and Tourism Open - restoration of Historical and TF / A1063 Prior Qualification 142,629.48 Signed Circuit Development International Architectural Environment of Selection the Central Part of Goris and development a Management Model for upgraded infrastructures LPD-01 / Development of Project Design and Author's Consultant Supervision for the Heritage Hub and Tourism IBRD / 85720 Post Qualification Open - National 44,049.21 Signed 2017-11-22 2017-12-06 2018-01-10 2018-01-17 2018-02-07 2019-06-22 Rehabilitation of Road Circuit Development Selection Segment Leading to Tatev Monastery Sub-project LV-01 / Detailed Consultant Heritage Hub and Tourism Measurement, Assets IBRD / 85720 Post Qualification Open - National 686.43 Signed 2018-01-09 2018-01-19 2018-02-16 2018-02-23 2018-03-16 2018-05-15 Circuit Development Inventory and Valuation Selection LTS-01 / Technical supervision of construction Consultant Heritage Hub and Tourism for Rehabilitation of road IBRD / 85720 Post Qualification Open - National 18,385.06 Signed 2018-04-13 2018-04-27 2018-05-25 2018-06-15 2018-07-06 2019-10-29 Circuit Development leading to Garni Stone Selection Symphony LTS-02 / Technical supervision of construction Consultant Heritage Hub and Tourism for Rehabilitation of Road IBRD / 85720 Post Qualification Open - National 24,136.16 Signed 2018-05-17 2018-05-24 2018-06-21 2018-07-12 2018-08-02 2019-03-30 Circuit Development Segment Leading to Tatev Selection Monaster LTS-03 / Technical Supervision of construction Consultant Heritage Hub and Tourism for "Streets Rehabilitation IBRD / 85720 Post Qualification Open - National 23,455.56 Signed 2018-08-02 2018-08-16 2018-09-13 2018-10-04 2018-10-25 2019-03-24 Circuit Development of Kumayri Historical Center Selection in Gyumri LTS-04 / Technical Supervision for Consultant Heritage Hub and Tourism "Reconstruction of the Road IBRD / 85720 Post Qualification Open - National 7,745.90 Signed 2018-11-21 2018-11-28 2018-12-24 2019-01-14 2019-02-04 2019-07-04 Circuit Development Leading to "Sochut" Selection Dendropark" AUD-18 / AUDIT OF THE LOCAL ECONOMY AND INFRASTRUCTURE Consultant DEVELOPMENT PROJECT Heritage Hub and Tourism IBRD / 85720 Post Qualification Open - National 24,124.85 Signed 2018-12-04 2018-12-11 2019-01-06 2019-01-27 2019-02-17 2019-08-16 (LEID) FOR THE PERIOD Circuit Development Selection FROM DECEMBER 29, 2016 TO DECEMBER 31, 2018 LPD-06 / Design and Author's Supervision for the Consultant Heritage Hub and Tourism Utility Infrastructure of IBRD / 85720 Post Qualification Open - National 0.00 Signed 2019-03-27 2019-04-10 2019-05-15 2019-05-22 2019-06-12 2019-07-12 Circuit Development "Areni Wine hotel" in Areni Selection community LGS-01 / The geological and geophysical surveys of Consultant the road section bypassing Heritage Hub and Tourism IBRD / 85720 Post Qualification Open - National 22,832.32 Signed 2019-05-14 2019-05-21 2019-06-27 2019-07-27 2019-08-17 2019-09-26 the landslide of road Circuit Development Selection leading to Tatev monastery sub-project Page 2 LTS-05 / Technical Consultant Supervision of construction Heritage Hub and Tourism Under IBRD / 85720 Post Qualification Open - National 0.00 2019-08-26 2019-09-02 2019-09-28 2019-10-19 2019-11-09 2020-05-07 for "Khor Virap Monastery Circuit Development Implementation Selection Area Landscaping". INDIVIDUAL CONSULTANTS Activity Reference No. / Invitation to Loan / Credit Market Actual Amount Draft Negotiated Description Component Review Type Method Contract Type Process Status Teams of Reference Identified/Selected Signed Contract Contract Completion No. Approach (US$) Contract Consultant Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual LPD-02 / Autors supervision for Construction Heritage Hub and Tourism For Rehabilitation Of Road IBRD / 85720 Post Direct Selection Direct 7,141.45 Signed 2018-04-26 2018-05-06 2018-05-30 2019-09-22 Circuit Development Leading To Garni Stone Symphony LPD-03/1 / Author's Supervision of construction Heritage Hub and Tourism for "Streets Rehabilitation IBRD / 85720 Post Direct Selection Direct 7,242.39 Signed 2018-08-02 2018-08-12 2018-09-05 2019-02-02 Circuit Development of Kumayri Historical Center in Gyumri LPD-04 / Geological research and Design development for the Heritage Hub and Tourism IBRD / 85720 Post Direct Selection Direct 15,489.35 Signed 2018-12-14 2018-12-22 2019-01-15 2019-02-04 Rehabilitation of landslide Circuit Development segment of road leading to Tatev monastery sub-project. LPD-05 / Author's Supervision of Heritage Hub and Tourism Under "Reconstruction of the Road IBRD / 85720 Post Direct Selection Direct 0.00 2019-02-05 2019-02-15 2019-03-11 2019-08-08 Circuit Development Implementation Leading to "Sochut" Dendropark". LPD-07 / Author’s Supervision of Construction Heritage Hub and Tourism Pending IBRD / 85720 Post Direct Selection Direct 0.00 2019-09-20 2019-09-30 2019-11-09 2020-05-07 of "Khor Virap Monastery Circuit Development Implementation Area Landscaping " Page 3