Advance Action on Procurement, Consultant Recruitment and Retroactive Financing

Country/Borrower: People's Republic of China

Title of Proposed Project: Inner Mongolia Autonomous Region Environmental Improvement Project

Name and Address of Executing Agency:

Government of Inner Mongolia Autonomous Region
Development and Reforms Commission
45 Wulanchabu Road , Hohhot 010010, Inner Mongolia
People' s Republic of China

Contact Person: Ms Yang Minyi
e-mail address:nmgpmo@vip.sina.com
Tel. No. 86-471-2267431
Fax No. 86-471-2267432
Brief Description of Project:

The Project covers eight cities in Inner Mongolia Autonomous Region (IMAR) and consists of the following: (i) improvement of city central heating supply in Wulateqian, Linhe, Wulatezhong, Wuyuan, Wuhai, Hangjinhou, Wulatehou, and Denkou; (ii) gas transmission/distribution improvement in these eight cities/counties; (iii) wastewater treatment in Wulateqian and Wulatehou; and (iv) institutional reforms and corporate governance improvement for all project implementing agencies (PIAs). Policy dialogue with the Government during project processing has focused on: (i) maximizing benefits to the poor and ensuring that the poor have sufficient heating by establishing specific gas and heating assistance programs, (ii) implementing market-based tariff reforms and improving billing collection, and (iii) promoting private sector participation.

Brief Description of Works, Goods and Consultant Services to be Procured:

To facilitate the start-up of project implementation, the Government requested advance action that includes recruitment of consultants and procurement of goods and civil works, and retroactive financing of eligible expenditures up to $12.0 million incurred from June 2006 up to loan effectiveness of the Project. All procurement to be financed under ADB loan will be carried out in accordance with ADB's Guidelines for Procurement.

For project implementation supervision, international and domestic consultants will be engaged to assist the EA and the PIAs with (i) project design and engineering, (ii) procurement, (iv) project management, and (v) monitoring the Project's impact. The consultants will assist the EA to prepare all required reports to ADB, as indicated n the Loan and Project agreements. About 12 person-months of international and 56 person-months of domestic consulting services will be required.

In addition, international and domestic consultants will be recruited for the institutional reforms and the corporate governance improvement subcomponent of the Project, which includes tariff reforms, strengthening institutional capacity of the PMO and all PIAs, and related international and domestic trainings. It is envisages that about 9 person-months of international consulting services and about 53 person months of domestic consulting services will be required.

Date of Advance Procurement Action Approval: 15 March 2006