PROCUREMENT PLAN (Textual Part) Project information: Mongolia Strengthening Fiscal and Financial Stability Project (P161048) Project Implementation agency: Project Implementation Unit (PIU) under Ministry of Finance (MOF) of Mongolia Date of the Procurement Plan: November 11, 2017 Period covered by this Procurement Plan: January 2018 – December 2019 1. 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. 2. 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. 3. 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. 3.1 National Open Competitive Procurement When the Borrower uses its own national open competitive procurement arrangements as set forth in Chapter Two of the Public Procurement Law of Mongolia enacted on December 1, 2005, as amended several times with the latest amendment on February 9, 2017, such arrangements shall be subject to paragraph 5.4 of the Procurement Regulations and the following conditions. (a) Participation in Bidding and Preferences (i) Government-owned enterprises in Mongolia shall be eligible to participate in bidding only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent of the agency contracting them. (ii) A bidder declared ineligible by the World Bank, based on a determination by the World Bank that the bidder has engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for or in executing a World Bank-financed contract, shall be ineligible to participate andbe awarded a World Bank-financed contract during the period determined by the World Bank. (iii) A firm which has been engaged by the Borrower to provide consulting services for the preparation or implementation of a project, and any of its affiliates, shall be disqualified from subsequently providing goods or works resulting from or directly related to the firm’s consulting services for such preparation or implementation. This provision does not apply to the various firms which together are performing the contractor’s obligations under a turnkey or design and build contract. (iv) Interested foreign bidders from eligible countries shall be allowed to participate without being required to associate or form joint ventures with local bidders. Foreign bidders shall be eligible to participate in bidding under the same conditions as local bidders. Mongolian bidders and goods of Mongolian origin shall be given no preference over foreign bidders, either in the bidding process or in the evaluation of bids. (v) Prior registration shall not be a requirement for any bidder to participate in bidding. (b) Request for Bids / Request for Proposals Documents (i) The request for bids/request for proposals documents shall be acceptable to the World Bank (ii) The request for bids / request for proposals documents and the signed contract shall include the clauses related to World Bank’s Policy in regard to corrupt and fraudulent practices. (iii) In the case of contracts of more than eighteen (18) months’ duration, the bidding documents and the resultant contract shall provide for price adjustment, based on a formula acceptable to the World Bank, which shall be disclosed to the bidders in the bidding documents. (v) There shall be no post-bidding negotiations with the lowest evaluated bidder or any other bidder. No bidder shall be required, as a condition for the award of contract, to change his bid price or otherwise materially alter his bid after it has been submitted. (c) Assessment of Bidder’s Qualification Qualification criteria shall be clearly specified in the bidding documents, and only criteria so specified, shall be used to determine whether a bidder is qualified. The evaluation of the bidder’s qualifications shall be conducted separately from the technical and commercial evaluation of the bid. When post qualification is applied, the assessment of bidder’s qualifications shall be carried out only after the preliminary and detailed evaluation of bids has been completed by the Recipient and, in doing so, the qualifications of the bidder who has submitted the lowest evaluated substantially responsive bid or most advantageous bid shall be assessed first. The evaluation of a bidder’s qualifications shall only take into account the bidder’s capacity and resources to perform the contract, specifically its experience and past performance on similar contracts, capabilities with respect to personnel, equipment and construction or manufacturing facilities and financial capacity. In carrying out the post-qualification assessment, the Recipient shall exercise reasonable judgment in requesting, in writing, from a bidder only missing factual or historical supporting information related to the bidder’s qualifications and shall provide a reasonable time period (that is, a minimum of seven days) to the bidder to provide his response. No bidders shall be disqualified on the ground that the bidder has tax debt. 3.2 Other National Procurement Arrangements 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. The request for bids / request for proposals / request for quotations documents should be acceptable to the Bank and jointly with the signed contract shall include the clauses related to World Bank’s Policy in regard to corrupt and fraudulent practices. The request for bids / request for proposals / request for quotations documents and the signed contract shall also include the clauses allowing the World Bank to inspect the site and/or all accounts and records relating to the performance of the contract and the submission of the bid or proposal, and to have such accounts and records audited. The standard text is attached hereafter. 4. Leased Assets as specified under paragraph 5.10 of the Procurement Regulations: Not applicable. 5. Procurement of Second Hand Goods as specified under paragraph 5.11 of the Procurement Regulations: Not applicable. 6. Domestic preference as specified under paragraph 5.51 of the Procurement Regulations (Goods and Works): Not applicable. 7. Hands-on Expanded Implementation Support (HEIS) as specified under paragraphs 3.10 and 3.11 of the Procurement Regulations: Not applicable. 8. Other Relevant Procurement Information: Not applicable.Standard Text for Fraud & Corruption and Inspection & Audit Fraud and The Bank requires compliance with the Bank’s Anti-Corruption Corruption Guidelines and its prevailing sanctions policies and procedures as set forth in the WBG’s Sanctions Framework, as set forth in Appendix to the GC. The Employer / Purchaser / Client requires the Contractor / Supplier / the Consultant to disclose any commissions or fees that may have been paid or are to be paid to agents or any other party with respect to the bidding /selection process or execution of the Contract. The information disclosed must include at least the name and address of the agent or other party, the amount and currency, and the purpose of the commission, gratuity or fee. Failure to disclose such commissions, gratuities or fees may result in termination of the Contract and/or sanctions by the Bank. Inspections The Contractor / Supplier / Consultant shall keep, and shall make all and Audit by reasonable efforts to cause its Subcontractors and Sub-consultants to the Bank keep, accurate and systematic accounts and records in respect of the Works / Goods / Services in such form and details as will clearly identify relevant time changes and costs. Pursuant to paragraph 2.2 e. of Appendix to the General Conditions the Contractor / Supplier / Consultant shall permit and shall cause its subcontractors and sub-consultants to permit, the Bank and/or persons appointed by the Bank to inspect the Site and/or the accounts and records relating to the performance of the Contract and the submission of the bid / proposal, and to have such accounts and records audited by auditors appointed by the Bank if requested by the Bank. The Contractor’s / Supplier’s / Consultant’s and its Subcontractors’ and sub-consultants’ acts intended to materially impede the exercise of the Bank’s inspection and audit rights constitute a prohibited practice subject to contract termination (as well as to a determination of ineligibility pursuant to the Bank’s prevailing sanctions procedures). APPENDIX TO GENERAL CONDITIONS Fraud and Corruption (Text in this Appendix shall not be modified) 1. Purpose 1.1 The Bank’s Anti-Corruption Guidelines and this annex apply with respect to procurement under Bank Investment Project Financing operations. 2. Requirements 2.1 The Bank requires that Borrowers (including beneficiaries of Bank financing); bidders, consultants, contractors and suppliers; any sub-contractors, sub-consultants, service providers or suppliers; any agents (whether declared or not); and any of their personnel, observe the highest standard of ethics during the procurement process, selection and contract execution of Bank-financed contracts, and refrain from Fraud and Corruption. 2.2 To this end, the Bank: a. Defines, for the purposes of this provision, the terms set forth below as follows: i. “corrupt practice” is the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party; ii. “fraudulent practice” is any act or omission, including misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain financial or other benefit or to avoid an obligation; iii. “collusive practice” is an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party; iv. “coercive practice” is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party; v. “obstructive practice” is: (a) deliberately destroying, falsifying, altering, or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede a Bank investigation into allegations of a corrupt, fraudulent, coercive, or collusive practice; and/or threatening, harassing, or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation; or (b) acts intended to materially impede the exercise of the Bank’s inspection and audit rights provided for under paragraph 2.2 e. below. b. Rejects a proposal for award if the Bank determines that the firm or individual recommended for award, any of its personnel, or its agents, or its sub-consultants, sub-contractors, service providers, suppliers and/ or their employees, has, directly or indirectly, engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices in competing for the contract in question; c. In addition to the legal remedies set out in the relevant Legal Agreement, may take other appropriate actions, including declaring mis-procurement, if the Bank determines at any time that representatives of the Borrower or of a recipient of any part of the proceeds of the loan engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices during the procurement process, selection and/or execution of the contract in question, without the Borrower having taken timely and appropriate action satisfactory to the Bank to address such practices when they occur, including by failing to inform the Bank in a timely manner at the time they knew of the practices; d. Pursuant to the Bank’s Anti- Corruption Guidelines and in accordance with the Bank’s prevailing sanctions policies and procedures, may sanction a firm or individual, either indefinitely or for a stated period of time, including by publicly declaring such firm or individual ineligible (i) to be awarded or otherwise benefit from a Bank-financed contract, financially or in any other manner;1 (ii) to be a nominated2 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; e. Requires that a clause be included in bidding/request for proposals documents and in contracts financed by a Bank loan, requiring (i) bidders, consultants, contractors, and suppliers, and their sub-contractors, sub-consultants, service providers, suppliers, agents personnel, permit the Bank to inspect3 all accounts, records and other documents relating to the submission of bids and contract performance, and to have them audited by auditors appointed by the Bank. 1 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. 2 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. 3 Inspections in this context usually are 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. PROCUREMENT Mongolia : Strengthening Fiscal and Financial Stability Project PLAN General Information Country: Mongolia Bank’s Approval Date of the Original Procurement Plan: 2018-03-13 2018-11-14 Revised Plan Date(s): (comma delineated, leave blank if none) Project ID: P161048 GPN Date: 2017-10-18 Project Name: Strengthening Fiscal and Financial Stability Project Loan / Credit No: IDA / 60850 Executing Agency(ies): Ministry of Finance 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$) Status Documents Evaluation Report Notice / Invitation as Issued Opening / Minutes Recommendation for Justification Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual GOODS Bid Evaluation Activity Reference No. / Draft Bidding Loan / Credit Market Procurement Prequalification Actual Amount Process Draft Pre-qualification Prequalification Specific Procurement Bidding Documents Proposal Submission / Report and Description Component Review Type Method Document / Signed Contract Contract Completion No. Approach Process (Y/N) (US$) 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 A31/GO/002 / Publication of the policy documents and regulations /Medium term debt management strategy, Pending Request for Single Stage - One debt management division IDA / 60850 Post Open - National 0.00 Implementati 2018-06-05 2018-07-31 2019-01-27 Quotations Envelope procedure manual, related on law and regulation, annual and quarterly debt report, DMFAS user guideline) A1/GO/001 / Purchase office Under Request for Single Stage - One IT goods (five laptops for IDA / 60850 Post Open - National 0.00 Implementati 2018-05-26 2018-07-21 2018-08-20 Quotations Envelope office use) on A32/GO/002 / Publication: Prepare and publish annual official development Pending Request for Single Stage - One assistance portfolio report IDA / 60850 Post Open - National 0.00 Implementati 2018-11-05 2018-12-31 2019-01-30 Quotations Envelope which includes current on statistics, trends and main performances of sectors. A31/GO/001 / Purchase one computer with desktop for Bloomberg terminal which is recommended requirements Under Request for Single Stage - One for user of Bloomberg IDA / 60850 Post Open - National 0.00 Implementati 2018-06-05 2018-07-31 2018-08-30 Quotations Envelope service two for the DMFAS on admins and IT consultant, three laptops for newly hired consultants B4/GO/001 / Purchase of Under office IT equipments Request for Single Stage - One IDA / 60850 Post Open - National 0.00 Implementati 2018-06-05 2018-07-31 2019-01-27 including PC, laptop, Quotations Envelope on projector C11/GO/001 / Publications of strategic documents, Pending Request for Single Stage - One guidelines, manuals, IDA / 60850 Post Open - National 0.00 Implementati 2019-01-05 2019-03-02 2019-04-01 Quotations Envelope pamphlets or brochures on produced under Comp C1-C3 Page 1 C5/GO/001 / Purchase of office IT goods Pending Request for Single Stage - One 1. Storage IDA / 60850 Post Open - National 0.00 Implementati 2018-09-05 2018-10-31 2018-11-30 Quotations Envelope 2. Server on 3. Optical switch. C4/GO/001 / Publication: print out manuals and guidelines for inspection officers. The manuals and Pending guidelines will be in the Request for Single Stage - One IDA / 60850 Post Open - National 0.00 Implementati 2018-08-05 2018-09-30 2019-03-29 following areas: i) Risk Quotations Envelope on based supervision, ii) Laws and regulations, iii) financial management and analysis, iv) manuals A32/GO/003 / Publication: Pending Request for Single Stage - One project implementation IDA / 60850 Post Open - National 0.00 Implementati 2018-11-05 2018-12-31 2019-01-30 Quotations Envelope manuals and guidelines on D1/GO/001 / Purchase of Goods (printing of training and public advocacy materials, guidance, Pending Request for Single Stage - One handouts, computers and IDA / 60850 Post Open - National 0.00 Implementati 2018-07-05 2018-08-30 2019-02-26 Quotations Envelope printers etc.) related to on Strengthening Social Welfare Programs design and operations D2/GO/001 / Purchase of Goods (printing of training and public advocacy materials, guidance, handouts, and Pending Request for Single Stage - One computers,printers for IDA / 60850 Post Open - National 0.00 Implementati 2018-06-28 2018-08-23 2019-02-19 Quotations Envelope capacity building etc.) on related to activity Strengthening social insurance design, governance and financial management A32/GO/001 / Purchase of office IT goods and services (Hardware): Under Request for Single Stage - One Server: 1 pc IDA / 60850 Post Open - National 0.00 Implementati 2018-07-04 2018-08-29 2019-02-25 Quotations Envelope Desktops: 5 pcs on Networking and other equipment E/GO/001 / Purchasing Pending Request for Single Stage - One Accounting software, IDA / 60850 Post Open - National 0.00 Implementati 2018-03-24 2018-05-19 2018-08-17 Quotations Envelope including maintenance fee on E/GO/003 / Purchase of IT Request for Single Stage - One goods for the purpose of IDA / 60850 Post Open - National 0.00 Canceled 2018-09-01 2018-10-27 2018-11-26 Quotations Envelope internal usage Under E/GO/004 / Office furniture Request for Single Stage - One IDA / 60850 Post Open - National 0.00 Implementati 2018-12-15 2019-02-09 2019-03-11 for internal usage Quotations Envelope on Pending E/GO/002 / Purchase of IT Request for Single Stage - One IDA / 60850 Post Open - National 0.00 Implementati 2018-12-01 2019-01-26 2019-02-25 goods for internal usage Quotations Envelope on Page 2 A2/GO/001 / Purchase of IT Goods (business desktops Pending with high speed suitable for Request for Single Stage - One IDA / 60850 Post Open - National 0.00 Implementati 2018-10-03 2018-11-28 2019-05-27 large amount of data Quotations Envelope on analysis and professional tablets "2 in 1") A2/GO/002 / Publications and printing of laws, Pending budgeting documents, Request for Single Stage - One IDA / 60850 Post Open - National 0.00 Implementati 2018-10-03 2018-11-28 2019-05-27 guidelines, manuals or Quotations Envelope on brochures produced under Sub-Component A2. 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$) Status Documents Evaluation Report Notice / Invitation as Issued Opening / Minutes Recommendation for Justification Award Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual B13/NC/001 / Public awareness activities of Pending Request for Single Stage - One Internal Audit Law, promote IDA / 60850 Post Open - National 0.00 Implementati 2018-11-05 2018-12-31 2019-06-29 Quotations Envelope internal audit issues among on public C11/NC/002 / Public awareness activities, Pending Request for Single Stage - One including Publication of IDA / 60850 Post Open - National 0.00 Implementati 2018-12-29 2019-02-23 2019-08-22 Quotations Envelope articles, newspapers and on magazines C11/NC/001 / Public awareness activities, Pending Request for Single Stage - One including broadcasting of IDA / 60850 Post Open - National 0.00 Implementati 2019-01-05 2019-03-02 2019-08-29 Quotations Envelope short-TV programs and on interviews. B11/NC/001 / Non consulting service to develop 2018 Citizen's budget video Under clips to improve budget IDA / 60850 Post Direct Selection Direct 0.00 Implementati 2018-07-02 2018-07-07 2018-08-11 2019-02-07 transparency and on predictability for better service delivery CONSULTING FIRMS Activity Reference No. / Combined Evaluation Loan / Credit Market Contract Type Actual Amount Expression of Interest Short List and Draft Request for Proposals Opening of Technical Evaluation of Description Component Review Type Method Process Status Terms of Reference Report and Draft Signed Contract Contract Completion No. Approach (US$) 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 Consultant E/CS/007 / Consultancy Pending IDA / 60850 Prior Qualification Open - National 0.00 2018-12-10 2018-12-31 2019-02-13 2019-03-15 2019-04-19 2019-05-09 services audit company Implementation Selection B13/CS/009 / Consulting firm to develop risk management system and strengthen risk management Consultant capacity including i.update Pending IDA / 60850 Post Qualification Open - National 0.00 2018-11-30 2018-12-21 2019-02-03 2019-03-05 2019-04-09 2020-04-08 and evaluate performance Implementation Selection risk of the MoF, ii. update and evaluate risks in public budget planning and other related tasks Page 3 B32/CS/001 / Consulting firm to process analysis in Consultant the implementation and Under IDA / 60850 Post Qualification Open - National 0.00 2018-11-30 2018-12-21 2019-02-03 2019-03-05 2019-04-09 2019-10-06 management of the general Implementation Selection and specific functions of the Ministry of Finance B22/CS/006 / Consulting firm on development of module on reporting and Consultant reconciliation of accounts of Pending IDA / 60850 Post Qualification Open - National 0.00 2018-10-31 2018-11-21 2019-01-04 2019-02-03 2019-03-10 2019-09-06 budget entity's at Implementation Selection commercials banks and its interface with Bank of Mongolia B22/CS/007 / Consulting firm on development and enhancement of customized reporting system /Integrating Consultant Pending GFMIS and E-reporting in IDA / 60850 Post Qualification Open - National 0.00 2018-10-31 2018-11-21 2019-01-04 2019-02-03 2019-03-10 2019-09-06 Implementation line with standard/ rules Selection GFS 2014 and reporting based on required coding blocks of MOF C31/CS/001 / Consulting Consultant firm to develop the Pending IDA / 60850 Post Qualification Open - National 0.00 2018-10-31 2018-11-21 2019-01-04 2019-02-03 2019-03-10 2019-09-06 compensation management Implementation Selection software A32/CS/002 / Consulting firm (Software development) to improve automation of tax exemption process and Consultant Pending recording to approve, review, IDA / 60850 Post Qualification Open - National 0.00 2018-08-27 2018-09-17 2018-10-31 2018-11-30 2019-01-04 2019-07-03 Implementation monitor and record Selection government taxes and duties exemption of externally funded development projects C11/CS/02 / Develop a long- term planning for capital market IT system Consultant Pending (implementation step X1.2-1), IDA / 60850 Post Qualification Open - National 0.00 2018-08-31 2018-09-21 2018-11-04 2018-12-04 2019-01-08 2019-07-07 Implementation upgrade existing system or Selection add modules or replace system D2/CS/011 / National consulting firm to draft Consultant legislation on specific types IDA / 60850 Post Qualification Open - National 0.00 Canceled 2018-05-31 2018-06-21 2018-08-04 2018-09-03 2018-10-08 2019-04-06 of pension paid from Social Selection insurance fund B11/CS/007 / Consulting firm to establish a sustainable training system at the nationwide to Consultant Pending strengthen the capacity of IDA / 60850 Post Qualification Open - National 0.00 2018-07-31 2018-08-21 2018-10-04 2018-11-03 2018-12-08 2019-06-06 Implementation budget officers to all level of Selection budget entities with the help of universities, NGOs and private entities B13/CS/007 / Consulting firm to develop and implement internal audit Consultant Pending planning, performance and IDA / 60850 Post Qualification Open - National 0.00 2018-11-30 2018-12-21 2019-02-03 2019-03-05 2019-04-09 2019-10-06 Implementation reporting software and Selection organize training to the internal audit staff Page 4 C4/CS/008 / Consultancy Consultant service (firm) to draft Over- Pending IDA / 60850 Post Qualification Open - National 0.00 2018-08-31 2018-09-21 2018-11-04 2018-12-04 2019-01-08 2019-07-07 the-counter (OTC) market Implementation Selection regulations INDIVIDUAL CONSULTANTS Page 5