Business Opportunities - Advance Action on Procurement, Consultants Requirement and Retroactive Financing

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Advance Action on Procurement and Retroactive Financing

Country/Borrower: People's Republic of China

Title of Proposed Project: Anhui Integrated Sector Improvement Project

Name and address of the Executing Agency

Anhui Provincial Department of Transport (APDOT)
8th floor Huayi Mansion
Hefei, Anhui, PRC
Fax:+86-551-2630290
Email:apcdpeo@vip.163.com
Contact: Mr. Luo Jie

Brief description of project:

The Project has four components: (i) Xuzhou-Mingguang Expressway (XME), (ii) Loal Roads and Safety Improvement, (iii) Rural Village Bus Service, and (iv) Institutional Development and Capacity Building.

Output 1: Improved road infrastructure in the Xuzhou-Mingguang Corridor delivered through Component A. The Project will expand the road capacity in the northeast Anhui by constructing the new 137 km four lane access controlled XME with a design speed at 120 kilometer per hour.
Output 2: Improved local roads and traffic safety practices delivered through Component B. A total of 452 km of local roads will be upgraded or rehabilitated. Traffic safety design, operation, and management practices on these existing local roads will be improved. The local roads were identified either as key links for inter-provincial and inter-county roads, or as critical missing link in the road network in low income areas.
Output 3: Improved rural village bus services delivered through Component C. The component will (i) develop local bus operators, based in the three townships (Shipai, Ducun, and Xiaowei), which will have the right to provide a coordinated network of bus services to the surrounding villages, and (ii) amend the licensing regulations applicable to bus services between townships and villages, and between villages, to permit greater flexibility in the use of vehicles, the fares charged and the types of vehicles used. The Project will also finance the setting up of small-scale bus stations, bus shelters and stops in the three selected townships.
Output 4: Strengthened institutional capacity delivered through Component D: (a) improved maintenance financing through preparing concept, feasibility analysis and action plan for the creation of a new financial framework for recommendation by Anhui Provincial Government (APG), and (b) strengthened institutional capacity through providing international and on-the-job training to APDOT, its related agencies, and Anhui Communications Investment Group Company (ACIG) staff notably involved in road safety, maintenance, public transport services, private sector participation, and environment management.

Brief Description of Goods and Related Services, Works or Consulting Services to be Procured:

ADB has approved the (i) advance contracting for procurement, engagement of consultants and training, and (ii) retroactive financing of eligible expenditures in an amount not exceeding $40 million. The Government was advised that ADB's approval of such advance contracting does not commit ADB to finance the Project.

All ADB-financed procurement will follow ADB's Guidelines for Procurement. All of the 15 expressway civil works packages will be awarded through international competitive bidding (ICB). Of the 21 local roads packages, 4 will be awarded through ICB and the remaining 17 will be awarded through national competitive bidding. The 3 civil works for the bus tops will be awarded through shopping.

The Project will finance 20 person-months of international consulting services, including 5 person-months each for the following specialists: (i) road safety, (ii) rural village bus services, (iii) road asset management, and (iv) environmental management. Considering the need for continuing the previous work carried out and application of background studies and analysis, it has been agreed that the international consultants engaged for preparing this Project under the PPTA will be recruited using individual consultant selection to provide support for road safety and rural village bus services components.

The Project will also provide $100,000 each to finance national consulting services for (i) the rural village bus services demonstration project supervision, (ii) the local road traffic safety program supervision, and (iii) road sector financing study. Given the very small contract values and the intensive relevant experience of the two national firms proposed by APDOT in the Project consulting services, the two national firms will be selected using single-source selection method. For the road sector financing study, a consulting firm will be engaged based on a simplified technical proposal through the consultant's qualifications selection (CQS) method. In addition, APDOT will engage and entirely finance 6,000 person-months of national consultants in accordance with government procedures acceptable to ADB. All consultants financed and engaged by ADB shall be recruited in accordance with Guidelines on the Use of Consultants by ADB and its Borrowers.

Date of Advance Contracting and Retroactive Financing Approval: 27 July 2009