AMENDMENT AND RESTATEMENT AGREEMENT‌


З А К О Н

О ПОТВРЂИВАЊУ СПОРАЗУМА О ИЗМЕНАМА И ДОПУНАМА, КОЈИ СЕ ОДНОСИ НА СПОРАЗУМ О ФИНАНСИРАЊУ, ОРИГИНАЛНО ПОТПИСАН 9.

НОВЕМБРА 2016. ГОДИНЕ ИЗМЕЂУ РЕПУБЛИКЕ СРБИЈЕ И НЕМАЧКЕ РАЗВОЈНЕ БАНКЕ „KFW”, ФРАНКФУРТ НА МАЈНИ И ПОСЕБНОГ

СПОРАЗУМА УЗ СПОРАЗУМ О ФИНАНСИРАЊУ


Члан 1.

Потврђују се Споразум о изменама и допунама, који се односи на Споразум о финансирању, оригинално потписан 9. новембра 2016. године између Републике Србије и немачке развојне банке „KfW”, Франкфурт на Мајни и Посебни споразум уз Споразум о финансирању, потписани у Београду 30. јула 2019. године, у оригиналу на енглеском језику.

Члан 2.

Текст Споразума о изменама и допунама, који се односи на Споразум о финансирању, оригинално потписан 9. новембра 2016. године између Републике Србије и немачке развојне банке „KfW”, Франкфурт на Мајни и Посебног споразума уз Споразум о финансирању у оригиналу на енглеском језику и преводу на српски језик гласи:

AMENDMENT AND RESTATEMENT AGREEMENT‌


dated      


relating to the


Financing Agreement

originally dated 9 November 2016 between

the Republic of Serbia

represented by

Ministry of Labour, Employment, Veteran and Social Affairs and

Public Investment Management Office


(“Recipient”) and

KfW, Frankfurt am Main

(“KfW”)


- Strenghtening of social infrastructure in municipalities strained by the refugee crisis I -


2015 69 029

Preamble


(A) On the basis of the intergovernmental protocol dated 25 November 2015 between the Government of the Federal Republic of Germany and the Government of the Republic of Serbia on Financial Cooperation, KfW and the Recipient entered into a financing agreement dated 9 November 2016 (the “Original Agreement”). Due to a change of the units acting on behalf of the Recipient the Original Agreement shall be amended and restated by way of this Amendment and Restatement Agreement (the “Agreement”).


(B) The Recipient continues to be represented by the Ministry of Labour, Employment, Veteran and Social Affairs (“MoLEVSA”) with regard to the execution of the amended and restated Original Agreement. The Public Investment Management Office (“PIMO”) will be responsible for the implementation of the investment measures related to the Programme (as defined in the Agreement). The respective detailed roles and responsibilities will be specified by a separate agreement to be concluded between the Recipient and KfW (“Separate Agreement”).


(C) Furthermore, based on the intergovernmental protocol dated 19 September 2017 between the Government of the Federal Republic of Germany and the Government of the Republic of Serbia on Financial Cooperation, the Federal Republic of Germany has committed to the Republic of Serbia an additional financial contribution for the Programme.


(D) For this reason, KfW and the Recipient (each a “Party”, together referred to as the “Parties”) intend to amend the Original Agreement by way of this Agreement as follows:

1. Interpretation


Subject to any express provision to the contrary in this Agreement or unless the context otherwise requires, terms defined in the Original Agreement shall have the same meaning in this Agreement.

2. Amendment and restatement


With effect from the date of entry into force of this Agreement the Original Agreement shall be amended and restated so that it shall be read and construed for all purposes as set out in the Annex attached hereto.


3. Further assurance


The Recipient agrees to do all such acts and things necessary or reasonably desirable to give effect to the amendments effected or to be effected pursuant to this Agreement.


4. Incorporation of terms


The provisions of articles 4.2, 5, 8.3, 8.4, 8.5 and 8.6 of the Original Agreement shall be incorporated into this Agreement as if set out in full in this Agreement and as if references in those clauses to “this Agreement” are references to this Agreement.


5. Entry into force


This Amendment and Restatement Agreement will enter into force and effect when


a) it has been ratified by the National Assembly of the Republic of Serbia; and


b) the Recipient has provided KfW with a written confirmation that the Amendment and Restatement Agreement has been duly ratified and published according to applicable law.


Should the Amendment and Restatement Agreement not have entered into force and effect within four months following the date the last party has signed this Agreement, KfW may, as of the day following the end of the four months period until the date of entry into force, unilaterally withdraw from this Amendment and estatement Agreement and thus terminate its provisional ineffectiveness by sending a written notification to the Recipient.

Done in 4 (four) originals in the English language.


Belgrade,


this    day of        , 2019


For the Republic of Serbia



Xxxxx Xxxxxxxxxx, s.r.


Minister of Labour, Employment, Veteran And Social Affairs

Xxxxx Xxxxxxxxxx, s.r.


Acting Director of Public Investment Management Office


Frankfurt am Main,

this    day of      , 2019


For KfW



Name: Xxxx Xxxxx, s.r.


Position: Director, KfW Belgrade

Name: Xxxxxxx Xxxx, s.r. Position: Project Manager


Annex: Financing Agreement

F i n a n c i n g A g r e e m e n t


dated     


between


KfW, Frankfurt am Main

("KfW")


and


the Republic of Serbia ("Recipient") represented by the

Ministry of Labour, Employment, Veterans and Social Affairs and

Public Investment Management Office


for


EUR 11,931,634.97


- Strengthening of social infrastructure in municipalities strained by the refugee crisis -


BMZ No.: 2015 69 029 & 2017 68 043

On the basis of the intergovernmental protocol dated 25 November 2015 as well as based on the intergovernmental protocol dated 19 September 2017 between the Government of the Federal Republic of Germany and the Government of the Republic of Serbia on Financial Cooperation, the Republic of Serbia and KfW enter into a Financing Agreement.

The Recipient shall, for the purpose of the execution of this Financing Agreement, be represented by the Ministry of Labour, Employment, Veterans and Social Affairs and Public Investment Management Office. The Programme (as defined in Article 1.2) shall be implemented by the Ministry of Labour, Employment, Veterans and Social Affairs (“MoLEVSA”) as well as by the Public Investment Management Office (“PIMO”). The respective detailed roles and responsibilities will be specified by a separate agreement to be concluded between the Recipient and KfW (“Separate Agreement”).

Article 1


Amount and Purpose of the Financial Contribution


1.1 KfW shall extend to the Recipient a financial contribution not exceeding


EUR 11,931,634.97,


consisting of two portions:


a) a portion of up to EUR 5,431,634.97 (BMZ No. 2015 690 29) (“Portion 1”) and


b) a portion of up to EUR 6,500,000.00 (BMZ No. 2017 680 43) (“Portion 2”).


Portion I and Portion II together are referred to as the “Financial Contribution”.


This Financial Contribution shall not be repayable unless otherwise stipulated in Article 3.2.

1.2 The Recipient shall use the Financial Contribution exclusively for the financing of investments and consulting services to improve the social infrastructure and the access to social infrastructure services in municipalities and town districts which are structurally weak and/or strained by the refugee crisis ("Programme"), and primarily to finance the foreign exchange costs. The Recipient and KfW shall determine the details of the Programme and the goods and services to be financed from the financial contribution by the Separate Agreement.

1.3 Taxes and other public charges to be borne by the Recipient and import duties shall not be financed from the Financial Contribution. The goods and services imported to the Republic of Serbia for the Programme shall be exempt from the customs fees and VAT and the trade of goods, services and equipment for the Programme shall be exempt from VAT in the Republic of Serbia.

Article 2


Disbursement


2.1 KfW shall disburse the Financial Contribution in accordance with the progress of the Programme and upon request of the Recipient, represented by MoLEVSA and PIMO, respectively, as further specified in the Separate Agreement. By the Separate Agreement, the Recipient and KfW shall determine the disbursement procedure, in particular the evidence proving that the requested funds are used for the stipulated purpose.

2.2 KfW shall have the right to refuse to make disbursements after 31 December 2022.


Article 3


Suspension of Disbursements and Repayment


3.1 KfW may not suspend disbursements unless


a) the Recipient fails to perform its obligations to KfW to make payments when due,

b) obligations under this Agreement or under separate agreements pertinent to this Agreement have been violated,

c) the Recipient is unable to prove that the disbursed amounts have all been used for the stipulated purpose,

d) the fulfilment of KfW’s obligations under this Agreement violates applicable law, or

e) extraordinary circumstances arise that preclude or seriously jeopardize the implementation, the operation, or the purpose of the Programme.

3.2 If any of the situations specified in Article 3.1 b), c) or d) has occurred and has not been eliminated within a period determined by KfW, which shall, however, be at least 30 days, KfW may,

a) in the case of Article 3.1 b) or d), demand the immediate repayment of all disbursed amounts;

b) in the case of Article 3.1 c), demand the immediate repayment of such amounts as the Recipient is unable to prove to have been used for the stipulated purpose.


Costs and Public Charges


Except for the customs fees and VAT not payable according to Article 1.3 referred to in sentence 2, the Recipient shall bear all taxes and other public charges accruing outside the Federal Republic of Germany in connection with the conclusion and execution of this Agreement, as well as all transfer and conversion costs accruing in connection with the disbursement of the Financial Contribution.

Article 5


Contractual Statements and Power of Representation


5.1 The Minister of Labour, Employment, Veteran and Social Affairs and such persons as designated by him or her to KfW and authorised by specimen signatures authenticated by him or her shall represent the Recipient in the execution and the implementation of this Agreement. The Director of PIMO and such persons as designated by him or her to KfW and authorised by specimen signatures authenticated by him or her shall represent the Recipient in the execution and implementation of this Agreement and the Programme. The powers of representation shall not expire until their express revocation by the representative of the Recipient authorised at the time has been received by KfW.

5.2 Amendments or addenda to this Agreement and any notices and statements delivered by the contracting parties under this Agreement shall be in writing. Any such notice or statement shall have been received once it has arrived at the following address of the corresponding contracting party or at such other address of the corresponding contracting party as notified to the other contracting party:

For KfW: KfW

Postfach 11 11 41

60046 Frankfurt am Main Federal Republic of Germany Fax: x00 00 0000-0000

For the Recipient: Ministry of Labour, Employment, Veterans and Social Affairs

Nemanjina 22-26

11000 Belgrade Serbia

Fax: x000 00 0000-000


Public Investment Management Office Nemanjina 11

11000 Belgrade Serbia

Fax: x000 00 0000-000


The Programme


6.1 The Recipient shall


a) prepare, implement, operate and maintain the Programme in conformity with sound financial and engineering practices, in compliance with environmental and social standards and substantially in accordance with the Programme conception agreed upon between the Recipient and KfW;

b) assign the preparation and supervision of construction of the Programme to independent, qualified consulting engineers, and the implementation of the Programme to qualified firms;

c) award the contracts for the goods and services to be financed from the Financial Contribution as set out in the Separate Agreement;

d) ensure the full financing of the Programme and, upon request of KfW, furnish to KfW evidence proving that the costs not paid from this financial contribution are covered. In particular, the Recipient will make available the necessary funds in the budget of Republic of Serbia for 2020 and 2021, for the full financing of the Programme as specified in the Separate Agreement;

e) maintain, or cause to be maintained, books and records unequivocally showing all costs of goods and services required for the Programme and clearly identifying the goods and services financed from this financial contribution;

f) enable the representatives of KfW at any time to inspect said books and records and any and all other documentation relevant to the implementation and the operation of the Programme, and to visit the Programme and all installations related thereto;

g) furnish to KfW any and all such information and reports on the Programme and its further progress as KfW may request; and

h) of its own accord promptly inform KfW of any and all circumstances that preclude or seriously jeopardize the implementation, the operation, or the purpose of the Programme.

6.2 The Recipient and KfW shall determine the details pertinent to Article 6.1 by the Separate Agreement.


Publication and transfer of Programme-related information


7.1 To comply with internationally accepted principles of utmost transparency and efficiency in the development cooperation, KfW publishes selected information (including evaluation reports) about the Programme and how it is financed during pre-contractual negotiations, while the Programme-related agreement(s) is (are) being implemented and in the post-contractual stage (hereinafter referred to as the "Entire Period").

The information is published regularly on KfW´s website for its business area “KfW Development Bank” (xxxx://xxxxxxxxxxx.xxx-xxxxxxxxxxxxxxxx.xx/).

The publication of information (either by KfW or third parties in accordance with Article 7.3 below) about the Programme and how it is financed does not include any contractual documentation or any sensitive financial or business-related detailed information about the parties involved in the Programme or its financing, such as

a) information about internal financial data;


b) business strategies;


c) internal corporate guidelines and reports;


d) personal data of natural persons;


e) KfW’s internal rating of the parties’ financial position.


7.2 KfW shares selected information about the Programme and how it is financed during the Entire Period with the entities mentioned below, particularly to ensure transparency and efficiency:

a) subsidiaries of KfW;


b) the Federal Republic of Germany and its competent bodies, authorities, institutions, agencies or entities;

c) other implementing organisations involved in German bilateral development cooperation, particularly the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH;

d) international organisations involved in collecting statistical data and their members, especially the Organisation for Economic Cooperation and Development (OECD) and its members.


7.3 Furthermore, the Federal Republic of Germany has requested KfW to share selected information about the Programme and how it is financed throughout the Entire Period with the following entities, which publish the sections relevant to the purpose:

a) Federal Republic of Germany for the purposes of the International Aid Transparency Initiative

(xxxx://xxx.xxx.xx/xx/xxx_xxx_xxxxxx/xxxx/xxxxxxxxxxx-xxxx-xxxx- Wirksamkeit/index.html);

b) Germany Trade & Invest (GTAI) for the purposes of market information (xxxx://xxx.xxxx.xx/XXXX/Xxxxxxxxxx/XX/xxxxx.XXX);

c) OECD for the purpose of reporting financial flows in the framework of development cooperation (xxxx://xxxxx.xxxx.xxx/);

d) German Institute for Development Evaluation (DEval) for the purposes of evaluating the overall German development cooperation to ensure transparency and efficiency (xxxx://xxx.xxxxx.xxx/xx/).


7.4 KfW further reserves the right to transfer (including for the purposes of publication) information about the Programme and how it is financed during the Entire Period to other third parties so as to safeguard legitimate interests.

The information is not transferred by KfW to other third parties if the legitimate interests of the Recipient in the information not being transferred outweigh KfW's interests in it being transferred. The legitimate interests of the Recipient particularly include the confidentiality of the sensitive information mentioned in Article 7.1, which is excluded from publication.

Furthermore, KfW is entitled to transfer information to third parties if this is necessary due to statutory or regulatory requirements or to assert or defend claims or other legal rights in court or administrative proceedings.

Article 8


Miscellaneous Provisions


8.1 The Recipient undertakes to comply at all times with the obligations set out in the Annex (Compliance Covenants).

8.2 If any of the provisions of this Agreement is invalid, all other provisions shall remain unaffected thereby. Any gap resulting therefrom shall be filled by a provision consistent with the purpose of this Agreement.

8.3 The Recipient may not assign or transfer, pledge or mortgage any claims from this Agreement.

8.4 This Agreement shall be governed by the law of the Federal Republic of Germany. The place of performance shall be Frankfurt am Main.

8.5 The legal relations established by this Agreement between KfW and the Recipient shall terminate with the end of the useful life of the Programme, but not later than 15 years after the signing of this Agreement.


Compliance Covenants

Annex


1. DEFINITIONS


Coercive Practice: the impairing or harming, or threatening to impair or harm, directly or indirectly, any person or the property of the person with a view to influencing improperly the actions of a person.


Collusive Practice: an arrangement between two or more persons designed to achieve an improper purpose, including to influence improperly the actions of another person.


Corrupt Practice: the promising, offering, giving, making, insisting on, receiving, accepting or soliciting, directly or indirectly, of any illegal payment or undue advantage of any nature, to or by any person, with the intention of influencing the actions of any person or causing any person to refrain from any action.


Fraudulent Practice: any action or omission, including misrepresentation that knowingly or recklessly misleads, or attempts to mislead, a person to obtain a financial benefit or to avoid an obligation.


Obstructive Practice: (i) deliberately destroying, falsifying, altering or concealing evidence material to the investigation or the making of false statements to investigators, in order to materially impede an official investigation into allegations of a Corrupt Practice, Fraudulent Practice, Coercive Practice or Collusive Practice, or threatening, harassing or intimidating any person to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation, or (ii) any act intended to materially impede the exercise of KfW's access to contractually required information in connection with an official investigation into allegations of a Corrupt Practice, Fraudulent Practice, Coercive Practice or Collusive Practice.


Person: any natural person, legal entity, partnership or unincorporated association.


Sanctionable Practice: any Coercive Practice, Collusive Practice, Corrupt Practice, Fraudulent Practice or Obstructive Practice (as such terms are defined herein), which (i) is unlawful under German or other applicable law, and (ii) which has, or potentially could have, a material legal or reputational effect on this Agreement between the Recipient and KfW or its implementation.


Sanctions: the economic, financial or trade sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by any Sanctioning Body.


Sanctioning Body: any of the United Nations Security Council, the European Union and the Federal Republic of Germany.

Sanctions List: any list of specially designated persons, groups or entities which are subject to Sanctions, as issued by any Sanctioning Body.


2. INFORMATION UNDERTAKING


The Recipient shall


a) promptly make available to KfW on demand all relevant "know your customer" or similar information about the Recipient as KfW may request;

b) promptly furnish to KfW on demand all Programme-related information and documents of the Recipient and its (sub)contracting and other related parties which KfW requires to fulfil its obligations to prevent any Sanctionable Practice, money laundering and/or terrorism financing as well as for the continuous monitoring of the business relationship with the Recipient which is necessary for this purpose;

c) inform KfW, promptly and of its own accord, as soon as it becomes aware of or suspects any Sanctionable Practice, act of money laundering and/or terrorism financing related to the Programme;

d) furnish to KfW any and all such information and reports on the Programme and its further progress as KfW may request for the purposes of this Annex; and

e) enable KfW and its agents at any time to inspect all other Programme-related documentation of the Recipient and its (sub)contracting and other related parties, and to visit the Programme and all installations related thereto for the purposes of this Annex.


3. REPRESENTATION AND WARRANTIES


3.1 With regard to German law or the law of the country of the Recipient, the Recipient represents that none of the Persons acting in relation to the Programme on the Recipient’s behalf has committed or is engaged in any Sanctionable Practice, money laundering or financing of terrorism.


3.2 The representation and warranty set forth in this Article is made for the first time by execution of this Agreement. It will be deemed to be repeated upon each drawing of the financial contribution by reference to the circumstances prevailing at that date.


4. POSITIVE UNDERTAKINGS


The Recipient undertakes, as soon as the Recipient or KfW becomes aware of or suspects any Sanctionable Practice, act of money laundering or financing of terrorism, to fully cooperate with KfW and its agents, in determining whether such compliance incident has occurred. In particular, the Recipient shall respond promptly and in reasonable detail to any notice from KfW and shall furnish documentary support for such response upon KfW's request.

5. NEGATIVE UNDERTAKINGS


The Recipient will not enter into any transactions or engage in any other activities in relation to the Programme that would constitute a breach of Sanctions.


Ministry of Labour, Employment, Veterans and Social Affairs

Nemanjina 22-26

11000 Belgrade Serbia


Public Investment Management Office Nemanjina 11

11000 Belgrade Serbia

KfW Development Bank Xxxxxxx Xxxx

Our ref.: BhSa Phone:x00 00 0000-0000

Fax:x00 00 0000-0000

xxxxxxx.xxxx@xxx.xx


. .2019


German Financial Cooperation with the Republic of Serbia

Strengthening of social infrastructure in municipalities strained by the refugee crisis

Phase 1: EUR 5,431,634.97 (BMZ No. 201569029, Portion 1)

Phase 2: EUR 6,500,000.00 (BMZ No. 201768043, Portion 2)


Separate Agreement to the Financing Agreement dated      


Dear Sir or Madam


We refer to the Financing Agreement entered into between the Republic of Serbia, represented by the Ministry of Labor, Employment, Veterans and Social Affairs (“MoLEVSA”) and KfW (“KfW”) dated 09.11.2016 (the “Original Financing Agreement”), as amended and restated by the Amendment and Restatement Agreement relating to the Original Financing Agreement, signed between the Republic of Serbia, represented by MoLEVSA and Public Investment Management Office (“PIMO”), and KfW on

      (thereinafter the “Restated Financing Agreement”), and the Separate Agreement to the Original Financing Agreement entered into between MoLEVSA and KfW dated 06.11.2016 (“Original Separate Agreement”).


Unless a contrary intention appears, capitalized terms defined in the Restated Financing Agreement and/or in the Original Separate Agreement have the same meaning in this letter.


With effect from the date of this letter the Original Separate Agreement shall be amended and restated so that it shall be read and construed for all purposes as set out in the Annex.


The provisions of the Original Separate Agreement shall, save as amended by this letter, continue in full force and effect.


This letter does not amend any other provision of the Original Separate Agreement other than explicitly provided for under this letter.


This letter is governed by and construed in accordance with German law.

Please acknowledge your agreement with the terms and conditions of this letter by signing in a legally binding form where indicated below and returning an original to KfW.

Yours sincerely, KfW


In accordance with the Restated Financing Agreement entered into between the Republic of Serbia (the “Recipient”) represented by the Ministry of Labour, Employment, Veteran and Social Affairs ("MoLEVSA”) and Public Investment Management Office (“PIMO”), and KfW ("KfW") dated

       the following shall be determined by separate agreement.


Pursuant to the Preamble


the roles and responsibilities of MoLEVSA and the Public Investment Management Office (“PIMO”) in the implementation of the Programme;

Pursuant to Article 1.2:


the details of the Programme as well as the goods and services to be financed from the Financial Contribution;

Pursuant to Article 2.1:


the disbursement procedure, in particular the evidence proving that the disbursed financial contribution amounts are used for the stipulated purpose;

Pursuant to Article 6.2:


the details pertaining to Article 6.1.


We propose that the following be agreed upon:

I. Programme Design


1. Details of the Programme


The programme “Strengthening of social infrastructure in municipalities strained by the refugee crisis” (“Programme”) consists of several infrastructure investment measures (“Projects”) regarding the rehabilitation, extension, and/or new construction of social infrastructure in municipalities and town districts which are structurally weak and/or strained by the refugee crisis. It further consists of a technical assistance component targeting vulnerable groups, in particular ethnic Roma, in the participating municipalities, facilitating inclusion as well as access to social infrastructure services (“Soft Measure”). The purpose of the Programme is to improve social infrastructure services for the local population and in particular vulnerable groups, such as ethnic minorities (for example Roma) and returnees from failed migration attempts. If pertinent, access to social infrastructure services for transiting migrants in the Programme municipalities shall be improved, too. This is to contribute to reduce pressure to migrate for the local population and to attenuate the conflict potential between transiting migrants and the local population (if applicable).

The criteria for reaching these objectives, the Programme results and the required Programme activities as well as the assumptions underlying the Programme purpose and the Programme results are contained in Annex 1.

The design of the Programme is based on the final report of the project preparation mission prepared by Volvendo Consulting in April 2016 available to KfW and MoLEVSA and on the agreements made between KfW and MoLEVSA during the local Project appraisal and recorded in the Minutes of Meeting and its annexes dated April 22nd, 2016 (“MoM”), in the framework of which the eligibility of investment measures was defined. It is further based on subsequent discussions between KfW, MoLEVSA and PIMO regarding the governance structure of the Programme and the magnitude of foreseen interventions.

The following Programme measures (“Programme Measures”) shall be financed from the Financial Contribution:

a) Various infrastructure investments (“Investment Measures”), including the rehabilitation, extension or new construction of kindergartens, schools, health facilities, or other social infrastructure facilities in selected Programme municipalities (the detailed list of Projects is contained in Annex 3).

b) Expert services (“Monitoring Consultant”) to support the project implementation unit in the Ministry of Labour, Employment, Veterans and Social Affairs (MoLEVSA) in the administration, monitoring and reporting related to the Programme. The Monitoring Consultant shall further subcontract visibility measures related to the Programme;

c) Expert services to support the project implementation unit in MoLEVSA in the implementation of the Soft Measure. In particular, MoLEVSA shall assign the responsibilities related to the implementation of the Soft Measure and the reporting regarding the Soft Measure to a qualified NGO active in the sector in Serbia (“Soft Measure NGO”);

d) Expert services supporting the Public Investment Management Office (PIMO) in the implementation of the infrastructure measures (Projects) in the scope of the Programme (“PIMO Support”).

2. Time Schedule


The underlying time schedule for the preparation, implementation and operation of the Programme is contained in Annex 2.

3. Total Cost and Financing


The estimated total Programme cost ("Total Cost") is approximately EUR 20.80 million. The Financial Contribution amount is EUR 11.93 million. The Government of the Republic of Serbia has committed itself to finance a certain number of Projects in the scope of the Programme (cf. Annex 3). The Government of the Republic of Serbia will use own resources for the financing of those infrastructure measures assigned to PIMO, and which cannot be covered by the Financial Contribution.

The composition of Total Cost and the financing plan are contained in Annex 4.


4. Changes in the Programme Design


Any major changes in the Programme design, including changes in the list of Projects in the scope of the Programme (cf. Annex 3) shall require KfW's prior consent, including any major change regarding the Procurement Plan (cf. Annex 5). MoLEVSA and XXXX shall inform KfW thereof immediately, stating the reasons, the planned measures and the consequences of the change (including the impact on Total Cost). Execution of such measures may commence only on the basis of revised planning and upon KfW's consent.

II. Project Implementation


1. Responsibilities and Time, Cost and Financing Schedule


1.1 a) Ministry of Labour, Employment, Veterans and Social Affairs (MoLEVSA)


MoLEVSA will designate prior to the start of the Programme a Programme Implementation Unit (PIU) in charge of the overall management of the Programme. The PIU shall consist of at least two staff members, one Programme Manager and one Programme Coordinator, and will be responsible for monitoring the progress of the Programme. The PIU shall further be responsible for the management of the Monitoring Consultant and the Soft Measure NGO.

b) Public Investment Management Office (PIMO)

The Government of the Republic of Serbia shall assign PIMO with the responsibility for the preparation and implementation of the Projects in the scope of the Programme. This includes the management of experts (PIMO Support).

PIMO shall establish and sign a contractual agreement with the participating municipalities regarding responsibilities in the Programme implementation prior to the award of works, goods and services contracts related to Investment Measures. KfW will be provided with a copy of each contractual agreement and an English translation thereof.

PIMO shall develop a Procurement Plan for Investment Measures and PIMO Support (cf. Annex 5). The Procurement Plan will be provided to MoLEVSA and KfW as soon as possible, but at the latest prior to the start of works tenders. The Procurement Planshall be submitted for KfW’s no objection. Any subsequent change in the Procurement Plan shall be submitted for KfW’s no objection.

PIMO shall assign a Project Executing Unit (PEU) responsible for the tasks related to preparation and implementation of the infrastructure measures. This includes, inter alia,

- the interaction with municipalities participating in the Programme;


- the establishment of contractual agreements with participating municipalities;


- the assessment and review of existing Project designs and support to municipalities in finalisation of detailed designs and Project documents;

- the preparation of standard procurement documents;


- the preparation and update of a Procurement Plan;


- the supervision of procurement processes and award of construction works by participating municipalities;

- the provision of technical advice to municipalities before and during the implementation of construction works, including the follow-up of the permitting process and approval procedures;

- the preparation of an Environmental and Social Management Plan (ESMP) and the supervision of the preparation of site-specific ESMPs as well as the implementation of social and environmental standards and proposed mitigation measures;

- supporting the construction supervision by the municipalities, monitoring the progress of Programme implementation as well as prevention and monitoring of any negative social and environmental and further Programme risks;

- ensuring the contracting of and close cooperate with local site supervision of works. To this end, PIMO shall ensure that the participating municipalities contract a separate consultant (“strucni nadzor”), to be financed from their budget;

- supporting the participating municipalities in provisional and final acceptance of works, goods and services;

- the assessment of invoices and supportive documentation and control of Interim Payment Certificates (IPCs);

- the preparation of payment requests to KfW;


- the administration of Programme funds, in particular administration of disposition funds for the financing of the Projects and PIMO Support, and procurement and contracting of annual independent audits of the disposition fund via UNDP;

- regular reporting, in collaboration with the Monitoring Consultant, on the Programme progress and Programme indicators;

- assisting municipalities during Defects Notification Period;


- ensuring coordination and communication with other relevant state agencies, in particular with the Ministry of Education and the Ministry of Health, where necessary.

PIMO shall communicate and coordinate with municipalities participating in the Programme and ensure that municipalities fully support all Programme activities. PIMO further ensures that responsible municipal stakeholders participate in all Programme activities and fulfil their respective responsibilities for the sustainable success of the Programme.

c) Participating Municipalities


Municipalities participating in the Programme will be in charge of the planning and implementation of Projects on a local level and thus act as Project-Executing Agencies. They will prepare the Project documents, supported by PIMO, and act as contracting authority for respective works, goods and supply contracts. Their role includes the following responsibilities, inter alia:

- provision of available designs and other Project documents and development of final Project documents with the support of XXXX;

- issuance of necessary permits, with the support of XXXX;


- implementation of the entire procurement processes, under supervision of XXXX. This includes preparation of tender documents, conducting the tendering procedure, answering questions from bidders, evaluating the bids, award of contracts and contract management;

- provision of a concept to mitigate any temporary interruptions of the regular infrastructure services by schools, ambulances, etc. through the investment activities, where relevant, and a concept for the sustainable operation of the respective facilities;

- preparation of an operation and maintenance concept for the individual Projects drawn up in cooperation with the respective municipal institutions prior to the

award of respective works, goods and services contracts. The operation and maintenance concept is to show that the financing of operation for the individual Projects is ensured;

- construction supervision and control of works for the Projects, including monitoring of social and environmental impacts and mitigation measures, and overall control of the performance of the contractor, under supervision of XXXX;

- review and approval of invoices, issuing of IPCs and submission of payment requests to PIMO;

- contracting the local site supervision (“strucni nadzor”) and full cooperation with site supervisors;

- submission of information on the impact and sustainable operation to the Monitoring Consultant and PIMO.

1.2 The detailed time, cost, and financing schedule, regularly updated for the proper technical and financial implementation of each Project, shall be prepared by PIMO in the framework of the updates to the Procurement Plan and payment forecasts for disbursement and submitted to KfW. Such schedule is to show, by deadlines and amounts, the intended chronological interrelation of the Programme activities and the resulting financial requirements. If any deviation from such schedule becomes necessary during the implementation of the Project, KfW shall be furnished with a revised schedule.

2. Environmental, Social and Health & Safety Compliance


2.1 The Recipient, represented by MoLEVSA and PIMO, shall ensure that their business and operations and the business and operations of participating Municipalities are at all times carried out in compliance with all applicable national environmental, occupational health and safety and social laws and regulations.

2.2 The Recipient, represented by MoLEVSA and PIMO, shall comply with and ensure that the participating municipalities comply with the Core Labour Standards of the International Labour Organization as set out in the ILO Fundamental Conventions.

2.3 PIMO shall


a) in collaboration with the participating Municipalities develop and implement Environmental and Social Management Plans (ESMP) for the construction and for the operation phases of the Projects, in compliance with national environmental and social standards;

b) ensure that a non-technical summary of the environmental and social documents (ESMP) is made publicly available in the Programme area in an accessible manner allowing affected people to voice concerns and suggestions and, if appropriate, is disclosed on PIMO’s and the municipalities’ website;

c) ensure the publicly available possibility for general inquiries and for the submission of suggestions or complaints from interested stakeholder and persons affected by the Programme;

d) ensure that mitigation measures and conditions developed in the ESMP shall be part of the tender documents for construction and the construction companies shall be requested to develop adequate and site-specific implementation methods and monitoring plans. Adapted site-specific ESMPs and monitoring plans shall be provided by construction companies 28 days after contract award, together with a performance guarantee.

3. Procurement of consulting services


3.1 In the framework of the Programme, the following consulting services shall be procured:

a) PIMO Support


PIMO will be supported by experts performing tasks in the framework of the preparation and implementation of the infrastructure measures (Projects) in the scope of the Programme. PIMO has designated UNDP with the procurement of PIMO Support, which consists of individual experts and direct project costs (travelling etc.). Individual experts will be selected in a national competitive procedure run by UNDP in accordance with UNDP procedures. ToRs for individual experts will be developed by PIMO and UNDP and submitted to KfW for no objection. The remuneration of individual expert services for the Programme duration is estimated at below EUR 100,000.00.

The duties of the individual experts comprise in particular assistance in preparation and implementation of the Projects (cf. Art. 1.1 b)).

b) Disposition Fund Auditor


PIMO will designate UNDP with the procurement of the annual audit of the disposition fund. Draft Terms of Reference for the auditor are provided in Annex 7 to this Agreement (Disbursement Procedure).

c) Monitoring Consultant


Following preselection and international public competitive bidding, a contract has been awarded to an independent qualified consultant. The contract awarding procedure was governed by the KfW guidelines applicable in accordance with the Original Separate Agreement.

In order to reflect modifications in the Monitoring Consultant’s responsibilities, MoLEVSA shall amend the existing contract accordingly.

Visibility and communication activities under the Monitoring Consultant contract shall be procured as follows:

- Services and goods up to 250,000 EUR by price quotation requesting an offer from a minimum of three bidders, under KfW prior review procedure and in accordance with KfW procurement guidelines (cf. Annex 6);

- Services and goods exceeding EUR 250,000 by international competitive bidding under KfW prior review procedure and in accordance with KFW procurement guidelines (cf. Annex 6).

Tender documents, evaluation reports as well as draft contracts and contract addenda or amendments shall be furnished to MoLEVSA for approval and to KfW for no objection.

The duties of the Monitoring Consultant comprise, inter alia:


- monitoring and reporting on the preparation and implementation of the Programme. This includes, inter alia, monitoring and reporting on preparation of infrastructure measures, procurement procedures, progress of works, financial management, and environmental and social safeguards;

- reporting on the Programme indicators and results;


- assistance to MoLEVSA in the preparation and implementation of visibility and communication activities.

d) Soft Measure NGO


MoLEVSA shall assign assign by direct award a NGO with the execution of the Soft Measure and the rendering of the related services. MoLEVSA shall award the contract to Arbeiter und Samariter Bund (ASB) as experienced NGO in the integration of vulnerable groups such as Roma, successfully operating in Serbia. The engagement of ASB shall require KfW’s prior approval. For this purpose, KfW shall be furnished in due course with the Terms of Reference, the draft contract, documents on the qualification of the experts chosen for the Soft Measure, the technical and financial offer and all other relevant documentation as KfW may request. MoLEVSA shall obligate ASB to submit together with the offer a properly executed declaration of undertaking (cf. Annex 6).

The duties of the Soft Measure NGO shall comprise, inter alia:


- fostering the inclusion of vulnerable groups (in particular ethnic Roma, including returnees) in education and other public social services in the participating municipalities of the Programme;

- conducting inclusion measures, including advice and support to Roma individuals, by social workers and inclusion experts with a particular access to the Roma communities and in close cooperation with municipalities and administrative bodies of school/ kindergarten/ health facilities and other social infrastructure facilities;

- regular reporting (inception report, quarterly reports, final report) on activities performed and Programme indicators achieved.

4. Procurement of works, goods and services


4.1 The contracts for works, goods and services shall be awarded by the participating municipalities, under the supervision of and in close cooperation with PIMO, and in accordance with the following (cf. Annex 5):

- for contracts with a value of more than EUR 2,000,000.00 upon prior international competitive bidding in accordance with KfW guidelines for procurement (cf. Annex 6);

- for contracts with a value of up to EUR 2,000,000.00 under the application of national competitive bidding in accordance with Serbian Law on Public Procurement (SLPP);

- for contracts with a value of up to EUR 100,000.00 under the application of price quotation procedure in accordance with SLPP.

4.2 For contracts with a value of up to EUR 2,000,000.00, KfW’s simplified review procedure applies. PIMO shall establish and present model procurement documents (incl. model contracts) for works, goods and services in English and Serbian language and submit them for KfW’s no objection. The respective model documents shall be used for all tenders of the Investment Measures. The evaluation report produced by the evaluation committee will be submitted to PIMO for approval.

After approval of the model procurement documents, no additional no-objection from KfW is requested prior to the publication of the tender. KfW’s no-objection to the tender documents, the final evaluation report including the proposal for award of contract, as well as the contract documents, will be provided retrospectively at the end of the procurement process. To this end, XXXX will ensure that a KfW expert will receive access semi-annually to relevant procurement documents of concluded procurement processes of the past six months in order to conduct the simplified review procedure. The date of the first post-review shall be agreed between KfW and PIMO; the subsequent dates will be fixed in a regular semi-annual turn. Subsequent modifying or amending agreements with an accumulated price increase below 25% of the original price will be subject to review in the framework of the simplified review procedure. In case of accumulated price increases above 25%, KfW’s no objection has to be obtained for any contract amendments.

In case of the detection of misprocurement or serious violation of procurement rules in the framework of the simplified review procedure, the respective affected contract will be deemed as non-eligible for financing by the Financial Contribution. Any disbursed amount used for such procurement and/or any other disbursed amount that cannot be adequately proved to have been spent for the purpose of the Project shall be declared as non-eligible and shall be returned.

4.3 For tenders exceeding a value of EUR 2,000,000.00, the prior-review procedure applies. The tender documents will be submitted to KfW for comment and no- objection in due course prior to the publication of the invitation to tender.

Furthermore, the final evaluation report including the proposal for award of contract shall be submitted to KfW for no objection prior to award. Prior to the conclusion of a contract for goods and services exceeding a value of EUR 2,000,000.00, KfW shall be furnished for comment with the draft contract as agreed upon, duly endorsed by PIMO and the municipalities. The same applies to any subsequent modifying or amending agreements. In general, all substantial decisions in the tender procedure shall be coordinated with KfW.

The remaining details concerning the awarding procedure and contractual provisions for procurements exceeding a value of EUR 2,000,000.00 are explained in the "Guidelines for the Procurement of Consulting Services, Works, Plant, Goods and Non-Consulting Services in Financial Cooperation with Partner Countries" (Annex 6), which form an integral part of this agreement.

4.4 The bidding period shall be fixed in a way that allows the bidders sufficient time to prepare their bids.

4.5 In the pre-qualification notice or - if no pre-qualification is conducted - in the tender documents, MoLEVSA and PIMO shall ensure that the bidders submit together with the pre-qualification documents or together with the bid a declaration of undertaking (cf. Annex 6).

4.6 When concluding contracts for goods, works and services to be financed from the Financial Contribution, the Recipient, represented by MoLEVSA and PIMO, shall also observe the following principles:

a) Services, goods and works financed from the KfW contribution in accordance with this Agreement and documents relating thereto, shall not be the subject of taxes, duties or fees of whatever nature including stamp duty and registration fees.

b) If for whatever reasons import duties shall arise they may not be financed from the Financial Contribution pursuant to Article 1.3 of the Financing Agreement. Therefore, such import duties, if part of the contract value, shall be stated separately in the contracts for the goods and services and in the invoices.

c) If payments due under the contracts for goods and services are to be made from the Financial Contribution, said contracts shall include a provision stipulating that any reimbursements, guarantee or similar claimable payments and any insurance payments shall be made for account of the Recipient to account at KfW, Frankfurt am Main, IBAN: XX00 0000 0000 0000 0000 00, BIC: XXXXXXXX, with KfW crediting such payments to the account of the Recipient. If such payments are made in local currency they shall be remitted to a special account of the Recipient in the country of the Recipient, which may be drawn on only with the consent of KfW. Such funds may be re-utilized for the execution of the Project with KfW's consent. In case funds cannot be transferred to the designated account at KfW for a legitimate reason, an

alternative process shall be defined together with KfW ensuring that returned funds are only used according to the stipulated purpose.

c) PIMO ensures that the respective partner to a supply and service contract provides the guarantees required according to the relevant guidelines (including Annex 6 and Serbian procurement law, where applicable) in the amount and at the time stipulated there, and that these guarantees remain in place until the complete fulfilment of all claims under the supply and service contracts secured by such.

4.7 Land acquisition, rights of way compensations and infrastructure to access Programme sites, where needed, are considered as municipal contributions. MoLEVSA and PIMO ensure that municipal financing for rights of way and other compensations will to be secured and budgeted accordingly in the municipal budget.

5. Special Implementation Agreements


5.1 The following shall be achieved prior to the signing of the amendment to the Monitoring Consultant contract:

- MoLEVSA has designated a Programme Implementation Unit (PIU);


- The PIU and PIMO have established the final list of prioritized Projects and obtained KfW’s no-objection.

5.2 The following shall be achieved prior to the award of the PIMO Support contract:


- The Government of the Republic of Serbia has designated PIMO with the responsibility for the implementation of the Investment Measures;

- PIMO has designated a Programme Executing Unit (PEA) and presented to KfW a comprehensive list of expertise envisaged to be engaged within the PEA responsible for the preparation and implementation of the Projects within the Programme;

5.3 The following shall be achieved prior to the award of the Soft Measure NGO contract:

- MoLEVSA shall have submitted to KfW for no objection the Terms of Reference for the services to be provided and the measures to be executed by the Soft Measure NGO. MoLEVSA shall further have submitted to KfW for no objection the draft contract and relevant further documentation as outlined in Art. 3.1 d).

5.4 The following shall be achieved prior to the start of the tendering of works, goods and services:

- The Procurement Plan has been set up by PIMO and KfW’s no objection has been obtained.

5.5 The following shall be achieved prior to the award of respective works, goods and services contracts related to Investment Measures:

- PIMO has established a contractual agreement with the respective participating municipality regarding the implementation of the Programme;

- PIMO has submitted to KfW summarized information on the selected individual Projects including a short justification of each Project, and shall submit to KfW a concept to mitigate any temporary interruptions of the regular infrastructure services by schools, ambulances, etc. and a concept for the sustainable operation of the respective facilities prepared my Municipalities.

- The impacts of each Project (number of pupils, patient, children or other beneficiaries directly benefitting from the projects and the respective share of minorities) have been reported by the Monitoring Consultant.

6. Provisions for the Proper Operation of the Investment Measures


To secure the proper operation of the Investment Measures, PIMO shall assist the municipalities in the preparation of an operation and maintenance concept for the individual Projects drawn up in cooperation with the municipalities and the respective municipal institutions prior to the award of respective works, goods and services contracts. The operation and maintenance concept is to show that the financing of operation for the individual Projects is ensured. PIMO shall submit to KfW an updated operation and maintenance concept for the individual Projects prepared by the municipalities prior to the commissioning of works.

III. List of Goods and Services and Disbursement Procedure


1. List of Goods and Services


1.1 The list of the goods and services to be financed from the Financial Contribution shall be prepared on the basis of the contracts concluded for works, goods and services. For this purpose, KfW shall be furnished with an original or a copy of each of said contracts and of any pertinent amending contracts for works, goods and services. In addition, KfW shall be furnished with a list of all contracts concluded drawn up by PIMO and containing the following data: contract date and value, designation, contractor, reference number, amount to be financed from the Financial Contribution. This information will be part of the Procurement Plan.

1.2 KfW shall inform the Recipient, acting through MoLEVSA and PIMO, on request of the amounts of the Financial Contribution that it has reserved for financing (list of goods and services).

2. Disbursement Procedure


KfW shall disburse the Financial Contribution foreseen for Investment Measures (including disposition fund auditor) and PIMO Support in accordance with the progress of the Programme and upon request of PIMO.

KfW shall further disburse the Financial Contribution foreseen for Soft Measure NGO and Monitoring Consultant in accordance with the progress of the Programme and upon request by XxXXXXX.

Disbursement shall be governed by the regulations of the “direct disbursement procedure” (for works, goods and services exceeding a value of EUR 2.0 million, and for the Monitoring Consultant and Soft Measure NGO contracts), and the “disposition fund procedure” (for works, goods and services up to a value of EUR

2.0 million, including the disposition fund auditor, and for the PIMO Support) as stipulated in Annex 7 (Disbursement Procedure), which forms an integral part of this agreement.

IV. Reporting and Other Provisions


1. Reporting


1.1 Until further notice, MoLEVSA in cooperation with PIMO, shall report to KfW quarterly on the progress of the Programme (progress reports), including the fulfilment of the implementation agreements stipulated in Section II.5. of this Agreement, the development of the Programme indicators as defined in Annex 1 of this Agreement, and on the development of all other important general conditions. The report shall include the points listed in Annex 8. In addition, MoLEVSA and XXXX shall report on all circumstances that might jeopardize the achievement of the overall objective, the Programme purpose and the results. At the time of the physical completion and commissioning of the last Project included in the Programme, but before the expiry of the guarantee period at the latest, the Recipient, represented by MoLEVSA and in cooperation with PIMO, shall submit a final report on the measures carried out. The final report shall contain also those measures to be financed by the Serbian Government contribution and executed by XXXX. The first report on the state of affairs (Inception Report) shall be submitted 2 months after the signature of the Monitoring Consultant contract. The reports must have been received by KfW not later than 2 weeks after the end of the period under review. The reports shall be countersigned by the Monitoring Consultant.

1.2 If the MoLEVSA, has charged the Monitoring Consultant to write the progress reports and/or the final report, the Recipient shall comment on the reports or acknowledge its approval of the content by countersigning the reports.

1.3 After completion of the Programme, the MoLEVSA shall report on its further development (see Annex 8 for details). KfW shall in due course inform the Recipient about the end of the reporting period.

2. Other Provisions


2.1 The Recipient, represented by MoLEVSA, and PIMO shall send KfW all such documents as are necessary for KfW to give the comments and approvals mentioned above or in the enclosed guidelines early enough to allow reasonable time for examination.

2.2 The Recipient, represented by MoLEVSA and PIMO, shall ensure the setting up of Programme sign boards that will contain at least the following message:

"A development project of the Republic of Serbia, co-financed by the Federal Republic of Germany through KfW."

A project seal provided by the German Embassy shall be placed on the project sign board.

2.3 The above provisions may be amended or modified at any time by mutual consent if this should appear useful for the implementation of the Project or the execution of the Financing Agreement. In all other respects, the provisions of Articles 6.2, 8 and 9 of the Financing Agreement shall apply to this Agreement accordingly.

Please confirm your consent to the above Agreement by signing in a legally binding form and returning the enclosed copy.Please forward a copy of the present letter in due course to the Monitoring Consultant.


Yours sincerely, KfW



Name: Xxxx Xxxxx, s.r.


Position: Director, KfW Belgrade

Name: Xxxxxxx Xxxx, s.r. Position: Project Manager


Annexes

Annex 1: Objectives and Results of the Programme and Assumptions for their Achievement

Annex 2: Time Schedule

Annex 3: Final list of Projects in the scope of the Programme Annex 4: Total Cost and Financing

Annex 5: Procurement Plan and Procurement Table

Annex 6: Guidelines for the Procurement of Consulting Services, Works, Plant, Goods and Non-Consulting Services in Financial Cooperation with Partner Countries

Annex 7: Disbursement Procedure Annex 8: Content and Form of Reporting

Read and agreed:


Ministry of Labour, Employment, Veteran and Social Affairs Belgrade,       



Xxxxx Xxxxxxxx, s.r. Minister


Public Investment Management Office Belgrade,       



Director


Xxxxx Xxxxxxxxxx, s.r. Acting Director

Objectives and Results of the Programme and Assumptions for their Achievement


Summary

Success indicators

Verification sources

Assumptions / Risks

Programme objective

1. Contribution to reduce pressure to migrate for Serbian citizens;

2. Contribution to reduce risks of conflict between transmitting migrants and local population (in case of continued transit of migrants through Serbia, only).

The programme objectives are assumed to be fulfilled when the module objectives have been reached.

The indicator for reaching the module objectives in sum on an aggregated level is that in at least 10 municipalities 40,000 direct beneficiaries and 5,000 beneficiaries belonging to vulnerable social groups (especially Roma and returnees) profit from improved social infrastructure services.1

Results over indicators will be assessed and provided by the Ministry (MoLEVSA) of the Republic of Serbia and reported to KfW by the monitoring consultant.


Module objective 1 : Local population benefits from improved social infrastructure services

The local population is benefitting from improved social infrastructure services.

Module objective 2 : Vulnerable groups benefit from improved social infrastructure services

Persons belonging to vulnerable social groups such as ethnic minorities or returnees from failed migration attempts are benefitting from improved social infrastructure services.

Module objective 3 : Transiting migrants benefit from improved infrastructure services (if applicable only2)

Transiting migrants are benefitting from improved infrastructure services in municipalities most affected by the migrant crisis (in case of continued transit of migrants through Serbia only).

Module objective 4 : Local job opportunities are created through construction activities

National personnel is engaged in execution of construction activities in the various Municipalities.

Module objective 5 : Ethnic Minorities benefit from enhanced accessibility to social services

Ethnic minorities, in particular Roma, are benefitting from an improved access to social infrastructure services.

Indicator 1 : Children/students/patients/other beneficiaries reached3

Indicator 1: No. of children / students / patients / or other beneficiaries benefitting from the rehabilitated, extended or newly constructed kindergartens / schools / health facilities or other social infrastructure facilities;

Indicator 2 : Vulnerable persons reached4

Indicator 2: No. of children / students / patients / or other beneficiaries belonging to vulnerable social groups such as ethnic minorities or returnees from failed migration attempts benefitting from the rehabilitated, extended or newly constructed kindergartens / schools / health facilities or other social infrastructure facilities;

Indicator 3 : Transiting migrants reached5

Indicator 3: No. of Transiting migrants benefitting from improved services, such as health facilities, solid waste disposal, shelter etc.;

Indicator 4 : Local jobs created through construction activities6

Indicator 4 : 150-200 local (Serbian) jobs are created or ensured per year of full construction activities.

Indicator 5 : Ethnic Roma reached through information/ awareness campaigns

Indicator 5: No. of members of Roma ethnic group reached by social workers/ mentors is at least 2,000.

Results over indicators will be assessed and provided by the Ministry (MoLEVSA) of the Republic of Serbia and reported to KfW by the monitoring consultant.

Assumptions / Risks regarding programme objective:

Macroeconomic and political development is not increasing pressure to migrate for local population in the selected Municipalities.


1 This indicator can only be reached when the FC-Component is fully financed (EUR 20.0 million). If only part of the financing can be ensured the indicator applies with the respective share of the full financing.

2 Depending on the development of the transit route of migrants, projects directed towards transmitting migrants can be included in the Programme. In case of no further relevance of the transiting migrants component, this indicator can be neglected.

3 The target value of persons to be reached in the different sectors shall be defined in the inception phase of the Programme.

4 The target value of vulnerable persons to be reached in the different sectors shall be defined in the inception phase of the Programme.

5 The target value of transiting migrants to be reached in the different sectors shall be defined in the inception phase of the Programme. In case of no further relevance of the transiting migrants component, this indicator can be neglected. .

6 The target value might be altered in the inception phase of the Programme. .


Outputs


Construction of social infrastructure:


The selected kindergartens, schools, health facilities or other social

infrastructure facilities have been successfully rehabilitated, extended or are newly constructed.

Baseline value7:

No. of selected kindergartens/ schools / health facilities / other social infrastructure in need for rehabilitation, extension or new construction.


Target value8:

Inception, Progress and the Final Report by the Monitoring Consultant will provide information on the baseline values and target values of the outputs.

Assumptions / Risks regarding module objective:


Number of children / students / patients / or other beneficiaries using the facilities is maintained or increases;


No. of kindergartens/ schools / health facilities / other social infrastructure successfully rehabilitated, extended or newly constructed.


Policies to include vulnerable social groups in the selected institutions is maintained;


Serbian companies / or sub-companies engaging local staff win in the respective tenders.




Module objective 3: only relevant, if transit route through Serbia is used by external migrants.

(Key) activities in the module


• Establishment of project implementing unit in the Ministry;

• Procurement of adequate consultancy services (monitoring consultant,) and expert services (soft measure NGO) to support implementation unit;

• Selection of projects to be supported through the programme;

• Establishment of project executing unit in PIMO and transfer of responsibilities from MoLEVSA to PIMO for implementation of projects;

• Rehabilitation, extension or new construction of kindergartens;

• Rehabilitation, extension or new construction of schools;

• Rehabilitation, extension or new construction of health facilities;

• Rehabilitation, extension or new construction of other social infrastructure facilities.

• Performance of information/ awareness campaigns related to enhancing access to social infrastructure services.



Assumptions / Risks regarding outputs:


PEU at PIMO is capable to ensure cooperation with Municipalities and to coordinate and control overall programme activities;


Project documentation of selected investments submitted by PUCs is of sufficient quality to be finalized with PIMO’s support;


Construction permits, where necessary, are available on time.


Persistence of social infrastructure services during construction is ensured.


Soft Measure NGO manages to establish close relationship with and access to ethnic Roma communities.



7 The actual number and the type of selected social infrastructure facilities shall be presented by the Implementation Consultant (after confirmation of the Min.

8 The final number and the type of rehabilitated/ extended / newly constructed social infrastructure facilities shall be presented by the Implementation Consultant (after confirmation of the Ministry) in the inception report.

Time Schedule for the Programme


Nr

Activity



Duration


2016

2017

2018

2019

2020

2021

2022






Months






















































































1

0

Project preparation


17







1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1





















































































































































1

1

Appraisal and approval by BMZ

4






0


1


1


1


1



































































































































































1

2

Procurement tender agent


3






0


1


1


1







































































































































































1

3

Financing Agreement and Separate Agreement

3








0


0


1


1


1

































































































































































1

4

Prequalification Implementation Consultant

4







0


0


0


0


1


1


1


1































































































































































1

5

Tender Implementation Consultant

11










0


0


0


1


1


1


1


1


1


1


1


1


1


1
























































































































































2

0

Restructuring of the Programme

20













0


0


0


0










1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1















































































































2

1

Restructuring of the Separate Agreement

20













0


0


0


0


0


0


0


0


0


0


0


0


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


































































































































2

2

Agreement MoLVSA - PIMO


2




































0


0


0






1


1


































































































































2

3

Variation/ restructuring of the Consulting Contract

3




































0


0






1


1


1

































































































































2

4

Contracting of Soft Measure NGO

2




































0


0







1


1


0



































































































































3

0

Project implementation


36













































1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1












































































3

1

PIMO preparation of infrastructure measures

20







































0


0


0


0


0


0


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1






























































































3

2

PIMO Management of construction works

24












































0


0


0


0


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


0


0















































































3

3

Construction works


24












































0


0


0


0


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


1


0


0




































































































3

4

PIMO management of the DNP

12




































































0


1


1


1


1


1


1


1


1


1


1


1


1


0


0


0


0


0



Final list of Projects in the scope of the Programme1, 2



Municipality



Institution



Project name


Selected for German FC [EUR]

Selected for Serbian Own Funds

[EUR]


Bačka Palanka

Day Care Center for vulnerable groups


Establishment of the "Day Care Center"


173.689


0


Beočin


Kindergarten 'Xxxxx Xxxxxxxxx'

Construction of the Daily Care room annexed to the Kindergarten 'Xxxxx Xxxxxxxxx', reconstruction


375.481


0

Bosilegrad

Kindergarten "Decja Radost"

Reconstruction kindergarten

207.714

0


Bujanovac

Elementary School “Xxxxxx Xxxxxxxxx”


School reconstruction


1.949.574


0


Bujanovac

High School “Sveti Sava” (Technical)


Reconstruction


0


1.276.085


Dimitrovgrad

Kindergarten in the village of Zeljusa

Construction sports hall of the building, reconstruction


0


342.366


Leskovac

Elementary School "Xxx Xxxxxxxxxxx" Predejane


Reconstruction of the school


0


994.283


Leskovac

Elementary School "Xxxx Xxxxxxxxx” Leskovac


Reconstruction of the school


0


1.424.962


Leskovac


Elementary and Secondary School "11.Oktobar" Leskovac


Reconstruction of the school


422.643


0


Leskovac


Elementary and Secondary School "11.Oktobar" Leskovac


Day care for the children with need of add. support


202.553


0


Leskovac

Health Centre - Children's Health Centre in Leskovac


Reconstruction and additional construction


1.509.021


0

Leskovac

Centre for Social Work

Establishment of the "Safe House"

42.536

0

Šid

Ambulance in Ilinci

Construction of the building

224.667

0


Subotica

Construction of the new gym for

the Elementary School 'Xxxx Xxxxx'

Construction of the new gym for the Elementary School 'Xxxx Xxxxx'


0


772.364


Subotica

Reconstruction of the Elementary School 'Xxxx Xxxxx'


Reconstruction of School


0


418.272


Subotica


Ambulance facility in Prozivka


Construction of the ambulance facility in Prozivka


237.106


0


Surdulica


Primary School "Xxx Xxxxxxxx"


Reconstruction of the school


638.751


0


Surdulica

Primary School in village Binovci


Reconstruction of the school


91.945


0


Vladičin Han


Technical High School


Construction of dormitory for students


0


784.894


Vladičin Han


Technical High School


Reconstruction technical school


0


2.754.571


Xxxxxxxx Xxx

Primary school "Xxx Xxxxxxxx" in Stubal

Sport hall construction, reconstruction of school


775.373


0


Vladičin Han


"Sveti Sava" Elementary School


Reconstruction of the school


804.288


0


Vranje

Elementary School “Xxxxxxx Xxxxxxxxx”


Reconstruction of the school


1.650.403


0


Vranje

School for children with special needs “Xxxx Xxxxx“


Reconstruction of the school


0


1.063.404


Žabari


Centre for Social Work

Reconstruction of the Centre for Development of Local Services and Social Protection at Municipality of Žabari


144.711


0

Totals 19.281.659 9.450.458 9.831.201


1 The proposed list of Projects might be slightly modified to account for exceptional reasons which may become aware in the preparation phase. Changes in the Projects list require the no-objection of KfW.

2 Equipment of basic IT-infrastructure and upgrading/ installation of digital connections in the facilities may be included in the individual projects where reasonable.

Total Cost and Financing


Estimated Total Costs and Financing:


Estimated Costs of the Programme

Mio. EUR

Financing Source

Investment Cost

19.30

KfW and Republic of Serbia

Consulting Costs for Monitoring Consultant and PIMO Support

1.00

KfW

Soft Measure

0.50

KfW

Total

20.80



Financing:


Programme Financing

Mio. EUR

Financing Sources

Financing by KfW

up to 11.93

KfW/ BMZ-Grant

Complementary Financing by Own Resources

8.87

Republic of Serbia

Total

20.80


Annex 5

I. Procurement Plan (Model)


Sub- project ID No.


Contract No.


Item


Description


Estimated cost EUR


Estimated cost RDS


Procure- ment method


KfW review method


Date: finalization of detailed design


Date: finalization of PQ stage


Date: tender announce- ment


Date: tender submission


1

P-KfW 1

School

Rehb. School

1.000.000

120.000.000

NCB

PR

01.01.2019

02.01.2019

03.01.2019

04.01.2019

2

P-KfW 2

School

Rehb. School

1.000.001

120.000.000

NCB

PR

01.01.2019

02.01.2019

03.01.2019

04.01.2019

3

P-KfW 3

School

Rehb. School

1.000.002

120.000.000

NCB

PR

01.01.2019

02.01.2019

03.01.2019

04.01.2019

4

P-KfW 4

School

Rehb. School

1.000.003

120.000.000

NCB

PR

01.01.2019

02.01.2019

03.01.2019

04.01.2019

5

P-KfW 5

School

Rehb. School

1.000.004

120.000.000

NCB

PR

01.01.2019

02.01.2019

03.01.2019

04.01.2019

6

P-KfW 6

School

Rehb. School

1.000.005

120.000.000

NCB

PR

01.01.2019

02.01.2019

03.01.2019

04.01.2019

7

P-KfW 7

School

Rehb. School

1.000.006

120.000.000

NCB

PR

01.01.2019

02.01.2019

03.01.2019

04.01.2019


Date: evaluation of technical bids

Date: evaluation of financial bids


Date: contract signing


Contract amount RDS


Contract amount EUR


Date: completion of works


Date: temporary acceptance


Date: final acceptance


Final cost RDS


Final cost EUR


05.01.2019

06.01.2019

07.01.2019

110.000.000

916.667

07.01.2019

08.01.2019

09.01.2019

115.000.000

958.333

05.01.2019

06.01.2019

07.01.2019

110.000.001

916.667

07.01.2019

08.01.2019

09.01.2019

115.000.001

958.333

05.01.2019

06.01.2019

07.01.2019

110.000.002

916.667

07.01.2019

08.01.2019

09.01.2019

115.000.002

958.333

05.01.2019

06.01.2019

07.01.2019

110.000.003

916.667

07.01.2019

08.01.2019

09.01.2019

115.000.003

958.333

05.01.2019

06.01.2019

07.01.2019

110.000.004

916.667

07.01.2019

08.01.2019

09.01.2019

115.000.004

958.333

05.01.2019

06.01.2019

07.01.2019

110.000.005

916.667

07.01.2019

08.01.2019

09.01.2019

115.000.005

958.333

05.01.2019

06.01.2019

07.01.2019

110.000.006

916.667

07.01.2019

08.01.2019

09.01.2019

115.000.006

958.333


37

II. Procurement Table



Subject to be procured

To be procured by

Tender procedure

Thres- hold

Review procedure

Value (approx.)

Source of finan- cing

Technical Assistance

Soft Measure NGO

MoLEVSA

Direct award

-

No objection by KfW

500,000

EUR

Grant

PIMO Support

PIMO

Nationally published vacancy notice


-

Prior-review


(No objection by KfW)


500,000

EUR


Grant

Monitoring

MoLEVSA

International


Prior-review



Consultant


competitive bidding (KfW Guidelines)

-

(No objection by KfW)

500,000

EUR

Grant

Visibility Services

Monitoring Consultant

Price Quotation (KfW

Guidelines)

Up to 250.000 EUR

Prior-review


(No objection by KfW)


250,000

EUR


Grant

Audit of the

Disposition

PIMO

Nationally

published


Prior-review


20,000


Fund


competition, organized by UNDP

-

(No objection by KfW)


EUR

Grant

Works & Supply

Goods and services (works, supplies and goods for Projects in the scope of the Pro-gramme)

Municipali- ties on behalf of PIMO

International competitive bidding (KfW Guidelines)

Above 2.000.000 EUR

Prior-review (No objection by KfW)


10,400,000

EUR


Grant

National competitive bidding (according to SLPP)

Below 2.000.000 EUR

Simplified review (No objection by KfW)

Price Quotation Procedure (according to SLLP)

Up to 100.000 EUR

Simplified review (No objection by KfW)

Respective Procedure according to SLPP

-

-

8.900.000

EUR

PIMO

(Serbian Govern- ment)


Guidelines for the Procurement of Consulting Services, Works, Plant, Goods and Non- Consulting Services in Financial Cooperation with Partner Countries


Disbursement Procedure


Content and Form of Reporting

I. Minimum Contents of the Monitoring Consultant Progress Reports


Table of Contents

- List of Annexes

- List of Abbreviations


Key Data

- BMZ-No.

- Client / Project Executing Agency/ Stakeholders

- Financing Institution

- Contractor / Supplier

- Essential contractual data (contract date, commencement date, completion date)

- Expected completion date

- Elapsed time

- Contractual and invoiced amounts


1. Executive Summary

- A maximum of 2-3 pages

- Progress of the planning and construction

- Keeping up with the schedule and the completion forecast

- Cost situation and future costs to complete the programme

- Significant changes in programme/ individual projects concept or major components

- Special Problems / Highlights

- Progress achieved in relation to the achievement of programme objectives (status of Programme indicators ; cf. results matrix)


2. Programme Activities

- Preparation of planning documents and approval of execution drawings

- Major activities under the supervision

- Target-actual comparison of the activities

- Conducting meetings

- Auditing of accounts

- Staffing, compared to the contract, the remaining man-months (Annex)


3. Progress of Construction Works

- Description of the major activities and outcomes including target-performance comparison

- During construction and installation indicating the degree of completion for the main components of the programme

- Separate statement of completion of construction and technical equipment

- Short presentation whether in carrying out the works local and international safety regulations are adhered to.

- Outline of the environmental and social impacts and compliance with environmental, social and occupational safety and health regulations during the construction period.


4. Time Schedule

- Visualization in the annex

- Presentation of the basic works schedule at project start

- Presentation of the actual commencement of the works on the main components

- Indication of the percentage of completion in relation to the basic schedule

- Identification and representation of the delays for individual projects and assessment in relation to the overall completion date

- Update the schedule showing the estimated completion dates for the main components of the Programme (annex)

- List of milestones, the planned completion, expected completion, and actual delays occurred (annex)

- eventually separate time scheduled for consulting services and construction works as required

- Description of risks to keep the initial or updated time schedule


5. Quality Management

- Summary of tests and examinations carried out (individual results may be annexed hereto)

- Presentation of procedures and measures for quality assurance by the Contractor and the construction supervision

- Demonstration of quality defects

- Information on spot checks

- Recommendations to improve the quality of construction


6. Contractual and Financial Information

- A list of Contractors with respective contract sums, contract addenda, contract dates (start of construction, completion dates), actual dates

- Presentation of the cost of individual projects / orders regarding estimated costs, contract value, prospective settlement sum (foreseeable additions and claims) and account and payment

- Forecast of the cash flow (e.g. for the following quarters), according to individual contracts and orders up the end of the Programme (in accordance with the updated time and construction schedule) and presentation of the call for funds since the Programme start (annex)

- Presentation of the disposition fund: total budget, remaining funds, status of disbursement, required transfer of funds (annex)

- A list of contract addenda (date of determination, submission, assessment) including justification and comments


7. Deviations from Programme Concept and Contracts

- Description and justification of deviations from the Programme concept and investment list

- Description and justification of significant deviations from the completed works, service and goods contracts

- Recommendation for future changes or deviations from the Programme design with sufficient justification.


8. Results of Programme Implementation

- Activities of the project executing agency and its progress and improvements

- Progress achieved in relation to the achievement of programme objectives (status of Programme indicators; cf. results matrix)

- Improvements achieved for the target group (effects) and possible impairment during the project implementation

- Substantial changes of the sector frame conditions


9. Problems

- Description of the current problems that arise in the implementation of the project.

- Proposals and recommendations on how to overcome problems

- Status concerning the solving of previous problems


10. Outlook and Recommendations

- Preview for the next quarter (planned activities and results)

- Recommendations and action by the project participants

- Editors

- Signature


Annexes to Progress Reports


• Monitoring Consultant Staffing Schedule

- Presentation separated for each staff member (in the case of staff replacement to be presented jointly under the respective staff item)

- total number of man-month available / budgeted for each staff member / expert position

- presently required man-months for each staff member / expert position

- remaining man-months for each staff member / expert position

- Visualization of actual versus planned staffing schedule


• PIMO Support staffing schedule

- presentation of PIMO Support staffing schedule and allocated budget

- presentation of actual vs. planned schedule and cost


• Time Schedule

- for consulting services and for construction works goods and supplies

- Presentation of target / performance comparison

- Update of time and construction schedule (anticipated completion periods and dates versus contractual completion periods and dates)


• Milestone List (as far as required)

- for individual projects

- planned completion dates

- anticipated completion dates

- actual completion dates

- delays


• Contracts

- List of all works and supply contracts

- Short description of the scope of work, and supplies

- Contract sum(s)

- Contract dates: commencement of works, scheduled completion of the entire Programme measures, actual completion of all Programme measures

- status of PIMO Support contract


• Quality Achieved


• Cost Control

- List of main projects / contracts

- estimated costs

- contract sum(s)

- anticipated / forecasted final billing amount (incl. expected addenda, variations, additional works, omissions, claims etc.)

- Status of payments and disbursements

- brief justification of deviations


• Procurement Plan

- Update of Procurement Plan for Projects and PIMO Support (cf. Annex 5)

• Cash Flow

- Schedule of awarded and planned construction works, goods and services contracts

- Schedule and status of PIMO Support and related costs

- Presentation of the anticipated final costs / payment amount for each individual contract

- Presentation of the payments done previously

- Prognosis of future payments up to the end of the Programme

- Presentation of the cash flow for each quarter (for projects with a long project duration annual presentation of the cash flow is acceptable for implementation periods in the far future)


• Disposition Fund

- allocated total funds

- transferred funds

- total sums of the payments processed

- predicted disbursements during the next reporting period (e.g. quarter)

- required transfer of funds during the next reporting period


• Minutes of Meeting and Important Correspondence


• Photo Documentation


II. Minimum Contents of the Soft Measure NGO Progress Reports


• Soft Measure NGO Staffing schedule

- presentation of staffing input for each staff member (in particular social worker/ inclusion experts), current and total;

- total foreseen budget for each staff member / expert position

- presently required and used man-months for each staff member / expert position

- visualization of actual versus planned staffing schedule


• Time Schedule

- visualization in the annex

- presentation of the implementation schedule at project start

- presentation of the current situation and updated planning

- identification and explanation of delays and assessment in relation to the overall completion date

- reference to current status of targets, planned completion

- description of risks to keep the initial or updated time schedule


• Outputs and Soft Measure indicators

- activities related to Soft Measure implementation and its progress;

- progress achieved in relation to the achievement of Soft Measure objectives and related Programme indicators, in particular target group reached and inclusion enhanced through targeted activities;

- substantial changes of the objectives.


• Changes to Soft Measure design

- description and justification of deviations from the Soft Measure concept and activity list

- recommendation for future changes or deviations from the Soft Measure design with sufficient justification.


• Cash Flow, Cost Management and Payment Forecast

- quarterly comprehensive presentation of the cash flow, according to individual activities performed;

- Presentation of the management of provided funds


• Contractual Information

-comprehensive overview of contract advancement

- list of sub-contracts and procurements within contract (if applicable)

- overview of contractual amendments, if applicable


• Communication and harmonization activities

- information on communication and harmonization activities with other entities (NGOs etc.) active in the sector,

- short overview of activities of other entities (donors, NGOs, etc) in the Programme municipalities and connection with Soft Measure activities, where applicable;

- information on communication with Municipalities, local stakeholders, schoosl, kindergartens, health and other social facilities, etc.



• Problems Encountered/ Solutions

- description of the current problems;

- proposals and recommendations on how to overcome problems

- status concerning the solving of previous problems


• Annex

o Minutes of Meeting, Important Correspondence

o Photo Documentation


Financial Cooperation


Guidelines for Procurement


January 2019


Guidelines for the Procurement of Consulting Services, Works, Plant, Goods and Non- Consulting Services in Financial Cooperation with Partner Countries



Published by:

KfW Bankengruppe Xxxxxxxxxxxxxxxxxxx 0-0

60325 Frankfurt am Main, Germany Phone x00 00 0000-0

Fax x00 00 0000-0000

xxx.xxx.xx


Edited by:

KfW Development Bank, Promotional Instruments and Procedures


Please direct any queries concerning these Guidelines to:

LR01 – FC-

Procurement and Non- Financial-Risks

Email XX-Xxxxxxxxxxxxxxxxx@xxx.xx Fax x00 00 0000-0000


Version January 2019


PREFACE


Financial Cooperation as part of German Development Cooperation is implemented by KfW Development Bank (KfW) as a public financial institution. Its function is to finance investments in economic and social infrastructure, poverty alleviation, environmental protection and the conservation of natural resources by providing loans on favourable terms and grants as well as complementary assistance and training measures. On behalf of the German Government and its Ministries (the Federal Ministry for Economic Cooperation and Development (BMZ), the Federal Foreign Office (AA) and others), KfW provides funding to its partners. In addition to full funding by KfW, projects may be financed in full or in part by a mandator, such as the European Union.


Sustainability with respect to economic, ecologic and social matters is an overarching objective in Financial Cooperation. KfW is committed to ensuring during preparation, design, implementation and operation of the underlying projects and programmes that this objective is met and that funding is used for the intended purpose. Therefore all parties involved shall comply with the principles of competition, fairness, transparency, confidentiality, economic efficiency and sustainability during the procurement of Consulting Services, Works, Plant, Goods and Non-Consulting Services (in each case as defined below).


The purpose of these Guidelines is to specify KfW's requirements for procurement and contracting and to set out in detail the scope of monitoring and reviews undertaken by KfW. These Guidelines are part of the Funding Agreement (as defined below) between KfW and its partners.


Feedback on or questions about this document should be in writing to the following address:

XX-Xxxxxxxxxxxxxxxxx@xxx.xx


Table of Contents


1. Scope of Application and Procurement Framework .- 9 -

1.1 Scope of Application of the Guidelines ..............................................................................- 9 -

1.2 Fundamental Arrangements...............................................................................................- 9 -

1.2.1 Basic Principles ........................................................................................................- 9 -

1.2.2 Responsibility for Procurement and Contract Performance...................................- 10 - 1.2.3 Declaration of Undertaking.....................................................................................- 10 - 1.2.4 KfW’s Standard Tender Documents.......................................................................- 11 -

1.3 Eligibility Criteria ...............................................................................................................- 11 -

1.3.1 Rules of Nationality and of Origin...........................................................................- 11 -

1.3.2 Grounds for Exclusion ............................................................................................- 11 -

1.3.3 Conflict of Interest...................................................................................................- 12 -

1.4 Sanctionable Practice.......................................................................................................- 13 -

1.5 Social and Environmental Responsibility .........................................................................- 13 -

1.6 Monitoring and Review by KfW ........................................................................................- 14 -

1.6.1 General...................................................................................................................- 14 -

1.6.2 Procurement Plan...................................................................................................- 14 -

1.6.3 No-Objection - Prior Review...................................................................................- 14 -

1.6.4 No-Objection - Simplified Review...........................................................................- 15 -

1.6.5 No-Objection - Post Review ...................................................................................- 15 -

1.6.6 Renewed No-Objection ..........................................................................................- 15 -

1.6.7 Advance Tendering ................................................................................................- 16 -

1.6.8 Prefinanced Contracts............................................................................................- 16 -

1.6.9 Indirect Financing ...................................................................................................- 16 -

1.6.10 Sanctions by KfW for Misprocurement.................................................................- 16 -

2. General Provisions for the Tender Process...........................................................................- 17 -

2.1 Tender Procedures...........................................................................................................- 17 -

2.1.1 International Competitive Bidding ..........................................................................- 17 -

2.1.2 National Competitive Bidding .................................................................................- 17 -

2.1.3 Limited Competitive Bidding...................................................................................- 18 -

2.1.4 Price Quotation................................................................................................. .....- 18 -

2.1.5 Direct Award .......................................................................................... ................- 18 -

2.2 Two-Stage and Single-Stage Selection .................................................................. ........- 19 -

2.3 One-/Two-Envelope Submission of Offers.......................................................................- 20 -

2.4 Preparation of the Tender Process ..................................................................................- 20 -


2.4.1 Standard Tender Documents and Draft Contract .- 20 -

2.4.2 Standards and Technical Specifications, Brand Names.........................................- 20 - 2.4.3 Registration and other Administrative Requirements..............................................- 21 - 2.4.4 Joint Ventures..........................................................................................................- 21 - 2.4.5 Language.................................................................................................................- 21 - 2.4.6 Currencies ...............................................................................................................- 22 - 2.4.7 Taxes and Duties.....................................................................................................- 22 - 2.4.8 Guarantees and Securities......................................................................................- 22 - 2.4.9 Fees for Tender Documents....................................................................................- 22 - 2.4.10 Submission Deadlines...........................................................................................- 22 - 2.4.11 Domestic Preference.............................................................................................- 23 -

2.5 Execution of the Tender Process ............................................................................. ........- 23 -

2.5.1 Publication of Tender Notice ...................................................................................- 23 -

2.5.2 Communications, Clarification of Tender Documents and Pre-Bid Meeting ..........- 24 - 2.5.3 One Application/Offer per Applicant/Bidder ............................................................- 24 - 2.5.4 Opening of Applications/Offers................................................................................- 25 - 2.5.5 Preliminary Examination of Applications/Offers ......................................................- 25 - 2.5.6 Evaluation of Evidence of Qualification...................................................................- 26 -

2.5.7 Information and Publication of Prequalified Applicants...........................................- 26 - 2.5.8 Evaluation of Offers.................................................................................................- 26 -

2.5.9 Clarification of Applications/Offers during Evaluation .............................................- 27 - 2.5.10 Extension of Offer Validity .....................................................................................- 27 - 2.5.11 Evaluation Report..................................................................................................- 27 - 2.5.12 Pre-Award Discussions .........................................................................................- 27 - 2.5.13 Information of Bidders and Award of Contract......................................................- 28 - 2.5.14 Publication of the Result of the Tender Process...................................................- 28 - 2.5.15 Cancellation of a Tender Process .........................................................................- 28 - 2.5.16 Publication of Tender Process Cancellation .........................................................- 29 - 2.5.17 Debriefing ..............................................................................................................- 29 -

2.6 Procurement Related Complaints ............................................................................... .....- 29 -

2.7 Electronic Procurement .................................................................................................. ..- 30 -

3. Provisions for Procurement of Consulting Services...................................................... .....- 30 -

3.1 Tender Agents and Agency Contract.......................................................................... .....- 30 -

3.2 Two-Stage Selection for Consulting Services................................................................ ..- 30 -

3.3 Pre-Qualification for Consulting Services...................................................................... ...- 30 -

3.4 Evaluation Methods for Consulting Services ............................................................ .......- 31 -

3.4.1 Quality and Cost-Based Selection (QCBS)...................................................... ......- 31 -

3.4.2 Least Cost Based Selection (LCS)..........................................................................- 32 -


3.4.3 Quality Based Selection (QBS) .- 32 -

3.4.4 Fixed Budget Based Selection (FBS).....................................................................- 32 -

3.5 Availability and Replacement of Proposed Key Staff before Award of Contract .............- 33 -

4. Provisions for Procurement of Works, Plant, Goods & Non-Consulting Services .............- 33 - 4.1 Engagement of a Consultant............................................................................................- 33 - 4.2 Single- and Two-Stage Selection.....................................................................................- 33 - 4.3 (Pre-)Qualification for Works and Plant Contracts...........................................................- 33 -

4.4 Evaluation Methods for Works, Plant, Goods and Non-Consulting Services ..................- 34 - 4.4.1 Lowest Price Evaluation ................................................................................... .....- 34 - 4.4.2 Bonus-Malus Adjusted Price Evaluation ................................................................- 34 - 4.4.3 Weighted Evaluation...............................................................................................- 35 - 4.4.4 Life Cycle Cost Evaluation (LCC)...........................................................................- 35 -

4.5 Alternative Bids.................................................................................................................- 35 -

4.6 Discounts..........................................................................................................................- 35 -

4.7 Transport and Insurance ..................................................................................................- 36 -

4.8 Force Account...................................................................................................................- 36 -

5. Procurement not subject to Public Procurement Regulations, Financial Intermediaries and Special Cases......................................................................................................................... ...- 36 -

5.1 Procurement not subject to Public Procurement Regulations ................................ ........- 36 - 5.2 Financial Intermediaries ...................................................................................................- 37 -

5.3 Specific Case of Concessions and Output Based Contracts...........................................- 37 -


Definitions


Capitalized terms used in the Guidelines have the meaning ascribed to them in this Section


Appendix Appendix to these Guidelines.


Applicant Person who submitted an Application in a Tender Process.


Application Set of documents submitted by an Applicant in order to prove eligibility and qualification to perform the Contract.


Award of Contract Legally binding signing of the Contract by the PEA and the Contractor or submission of a letter of formal acceptance of an Offer by the PEA, whichever is first.


Bid Set of documents submitted by a Bidder in order to participate in a Tender Process for procurement of Non-Consulting Services, Works, Goods and Plant.


Bidder Person who submitted an Offer in a Tender Process.


Coercive Practice The impairing or harming, or threatening to impair or harm, directly or indirectly, any person or the property of the person with a view to influencing improperly the actions of a person.


Collusive Practice An arrangement between two or more persons designed to achieve an improper purpose, including influencing improperly the actions of another person.


Consulting Services Services of an advisory/professional nature, including in particular the provision of expert/strategic advice, management services, coaching, policy development, implementation and communication services as well as advisory and project-related services, e.g. feasibility studies, project management, engineering services, supervision of construction, finance and accounting services, as well as training and organisational development.


Contract Legally binding written agreement signed between the PEA and the Contractor for Consulting Services, Works, Goods, Plant, or Non- Consulting Services which is awarded to a Bidder at the end of a Tender Process.


Contractor Bidder to whom the Contract has been awarded at the end of a Tender Process (e.g. consultant, works contractor or a supplier).


Corrupt Practice The promising, offering, giving, making, insisting on, receiving, accepting or soliciting, directly or indirectly, of any illegal payment or undue advantage of any nature, to or by any person, with the intention of influencing the actions of any person or causing any person to refrain from any action.


Declaration of Statement of integrity, eligibility and social and environmental

Undertaking (“DoU”) responsibility in the format attached as Appendix 1.


ESHS Environment, Social (incl. issues of sexual exploitation and abuse and gender-based violence), Health and Safety (incl. of security for personnel).


Fraudulent Practice Any action or omission, including misrepresentation that knowingly

or recklessly misleads, or attempts to mislead, a person to obtain a financial benefit or to avoid an obligation.


Funding Agreement Agreement between (a) KfW and a borrower (in the case of a

loan) or (b) KfW and a recipient (in the case of a grant), setting out the terms and conditions pursuant to which funding is made available by KfW.


Goods Commodities, raw material, machinery, equipment, vehicles, and related services, e.g. transportation, insurance, installation, commissioning, training, and initial maintenance.


GTAI Germany Trade and Investment GmbH (“GTAI”), the economic development agency of the Federal Republic of Germany which publishes diverse project and procurement related information on its website (xxx.xxxx.xx).


Guidelines KfW’s Guidelines for the Procurement of Consulting Services,

Works, Plant, Goods and Non Consulting Services in Financial Cooperation with Partner Countries.


Invitation to Bid Set of documents inviting prequalified Applicants, interested or

(“ITB”) preselected Persons, as the case may be, to submit a Bid.


Joint Venture (“JV” Joint Venture (JV) means an association with or without a

legal personality distinct from that of its members, of more than one Person where one member has the authority to conduct all business for and on behalf of any and all the members of the JV, and where the members of the JV are jointly and severally liable to the PEA for the performance of the Contract.


Key Expert A single individual professional whose skills, qualifications,

knowledge and experience are critical to the performance of the Contract and whose CV is taken into account during the evaluation.


Mandate KfW may be given a Mandate to carry out project funding with financial means of a mandator (e.g. European Union) based on a mandate agreement.


Non-Consulting Services which are not Consulting Services. Non-Consulting Services

Services are normally bid and contracted on the basis of performance of measurable outputs, and for which performance standards can be clearly identified and consistently applied, e.g. topographical and geotechnical surveys, soil investigations, aerial surveys and remote sensing, drilling, aerial photography, satellite imagery, mapping and similar operations, transport and distribution of Goods.


No-Objection KfW’s written notice concerning PEA’s documents and

decisions in the preparation and execution of a Tender Process.


Obstructive Practice Means (i) deliberately destroying, falsifying, altering or

concealing evidence material to the investigation or the making of false statements to investigators, in order to materially impede an


official investigation into allegations of a Corrupt Practice, Fraudulent


Practice, Coercive Practice or Collusive Practice, or threatening, harassing or intimidating any Person to prevent them from disclosing their knowledge of matters relevant to the investigation or from pursuing the investigation, or (ii) any act intended to materially impede the exercise of KfW's access to contractually required information in connection with an official investigation into allegations of a Corrupt Practice, Fraudulent Practice, Coercive Practice or Collusive Practice.


Offer General term for Proposals and Bids.


Partner Country Country of the PEA, in which the KfW financed project/programme is implemented.


Person Any natural or legal person or an association of two or more of the foregoing.


Plant Equipped facilities, executed on the basis of design, supply, installation, commissioning, maintenance, modification and protection (e.g. power plant, sewage plant or a production facility).


Prequalification First stage of a Two-Stage Selection to identify a number of

eligible and qualified Applicants, who will then be invited to submit an Offer.


Procurement Plan Document defined in Article 1.6.2 and set up by the PEA listing

all Tender Processes for Contracts financed by KfW including key procurement related information.


Project Executing Entity in charge of implementing a project, which directly or indirectly

Agency (“PEA”) receives funds made available under the Funding Agreement.


Proposal Set of documents submitted by Bidders in order to participate in a Tender Process for procurement of Consulting Services.


Public Procurement Law or legal regulation established by the state of the PEA for

Regulation the public procurement of Consulting Services, Works, Goods, Plant, or Non-Consulting Services in the Partner Country.


Request for Set of documents inviting potential Applicants to submit their

Application (“RfA”) evidence of qualification to perform the Contract.


Request for Proposal Set of documents inviting prequalified Applicants, interested

(“RfP”) or preselected Persons, as the case may be, to submit a Proposal.


Sanctionable Practice Any Coercive Practice, Collusive Practice, Corrupt Practice,

Fraudulent Practice or Obstructive Practice (as such terms are defined herein) which is unlawful under the Funding Agreement.


Single-Stage Selection Tender Process in which Persons submit their evidence

of qualification together with their technical and financial Offer.


Standard Tender Set of Tender Documents issued by KfW for procurement in KfW-

Documents (“SDO”) financed Projects.


Subcontractor Person to whom the Contractor subcontracts parts of the Contract

while remaining responsible to the PEA during the Contract performance.


Tender Document(s) RfA, ITB and RfP, including Draft Contract as well as any

clarification or amendment thereof during the Tender Process.


Tender Procedure Type of procedure (e.g. ICB, NCB, LCB Direct Award)

undertaken to approach Persons for the procurement of Consulting Services, Works, Goods, Plant, or Non-Consulting Services.


Tender Process Process carried out to procure Consulting Services, Works,

Goods, Plant or Non-Consulting Services, starting with the publication of a tender notice/invitation to submit an Offer, as the case may be, and ending with Award of Contract or cancelation of a Tender Process.


Terms of Reference Description of the objectives, scope of work, activities, and tasks

(“ToR”) to be performed, respective responsibilities of the PEA and the Contractor, and expected results and deliverables of a Consulting Services Contract.


Two-Stage Selection Tender Process which is divided into two consecutive stages with

an upstream Prequalification.


Works Construction, repair, rehabilitation, deconstruction, restoration and maintenance of civil work structures as well as related services, e.g. transportation, installation, commissioning and training.


1. Scope of Application and Procurement Framework


1.1 Scope of Application of the Guidelines

These Guidelines apply to the procurement of Consulting Services, Works, Goods, Plant and Non-Consulting Services by the PEA in projects and programmes financed in full or in part

1by KfW . The Guidelines are applicable as well if funding is made available as follows:

(1) In the case of mandates, unless where otherwise agreed with the provider of the mandate funds;

(2) in the case of co-financing by KfW and one or several other development partners. However, in such an event, the Guidelines may be, in all or in part, replaced by rules set out jointly with other development partners prior to any procurement procedure2;

(3) in the case of advanced tendering as per Article 1.6.6;

(4) in the case of Contracts prefinanced by the PEA as per Article 1.6.7,

(5) in the case of indirect financing (e.g. budget support, policy-based lending, result-based lending or joint programs and funds including multi donor trust funds) as per Article 1.6.8;

(6) in certain cases of funding to financial intermediaries (e.g. regional or national development banks or funds or specialised financial institutions) for the financing of economic or social infrastructure by final beneficiaries or borrowers as per Article 5.2. The Guidelines do not apply if the financial intermediary on-lends the funding to private borrowers which bear the financial risk.

In accordance with the Funding Agreement the Guidelines are binding on the PEA and any other entity officially in charge of procurement. The Guidelines apply without prejudice to the Public Procurement Regulation or other applicable local laws and regulations. In the case of a conflict between the Guidelines and the Public Procurement Regulation or other applicable local laws and regulations the PEA undertakes to inform KfW of its own accord and without undue delay in order to agree on provisions prior to any procurement that best preserve the basic principles as outlined in Article 1.2.1.


1.2 Fundamental Arrangements


1.2.1 Basic Principles


The Guidelines reflect the following basic principles which apply in KfW-financed procurement in accordance with internationally recognised practices:

Competition


Procurements must be carried out on the basis of competitive bidding. The procedures to be chosen for the procurement must address the maximum number of potential Applicants/Bidders.



1 The Guidelines apply analogically to KfW’s procurement in its own name up to the applicable EU procurement thresholds.

2 In particular, KfW is party to a partnership agreement with Agence Francaise de Developement (AFD) and the European Investment Bank (EIB) in the context of the Mutual Reliance Initiative (MRI).



Fairness


Potential Applicants/Bidders must be given equal opportunity to participate in a Tender Process. Unequal treatment of (potential) Applicants/Bidders must be prevented.

Transparency


The Tender Process must be thoroughly documented. Such information must be made available to all parties involved in accordance with their respective right to information.

Confidentiality


All procurement-related information is confidential. Only the parties involved shall have access to the relevant information in accordance with their respective right to information.

Economic Efficiency and Sustainability


In the interest of an efficient use of funds provided by KfW the aim of procurements is to award Contracts to Bidders with the best cost-performance-ratio. The Tender Process must take into account criteria that reflect not only the price, but also quality as well as technical and sustainability aspects.

Proportionality


The basic principles set out above must be applied appropriately, taking into consideration all relevant circumstances and the balance of interests during the respective Tender Process.


1.2.2 Responsibility for Procurement and Contract Performance


The PEA is responsible for the preparation and implementation of the procurement and the administration and performance of the Contracts. The relationship between the PEA, Applicants/Bidders and Contractors is exclusively governed (i) by the Tender Documents, (ii) the respective Contract and (iii) applicable laws and regulations.

KfW provides financing pursuant to the terms and conditions as set out in the Funding Agreement. No contractual relationship shall be deemed to exist between KfW and any third party other than the PEA. Any communications which may be exchanged between any third party and KfW in the context of a project shall not constitute and shall not be interpreted as constituting any undertaking or a stipulation by KfW in favor of such a third party.

KfW may suspend or terminate a Funding Agreement without the Contractors being informed beforehand and without being entitled to claim from KfW any direct right to the amounts which, as the case may be, originate from such financing.

Unless otherwise agreed in the Funding Agreement, the PEA undertakes to retain and to make available to KfW (or an agent appointed by KfW) for a period of at least six (6) years from the date of fulfilment or termination of a Contracts records and documents relating to the Tender Process and the implementation of the Contract, in particular those documents which are subject to KfW’s No-Objection as per Article 1.6.3.


1.2.3 Declaration of Undertaking

The PEA and the respective Contractor (including all JV partners and proposed or engaged Subcontractors under the Contract) shall observe the highest standard of ethics and respect social and environmental standards during the Tender Process and the implementation of a Contract. The PEA shall require Applicants/Bidders to provide a duly signed Declaration of Undertaking as part of any Application, Offer and Contract (see Appendix 1). In the case of co-financing, the Declaration of Undertaking may be replaced by a specific statement approved by all co-financiers prior to any Tender Process.



Should the Declaration of Undertaking not be provided or should the declarations or commitments by Applicants, Bidders or Contractors included therein not be complied with, KfW is entitled to take further measures in accordance with Articles 1.3.2 and 1.3.3.


1.2.4 KfW’s Standard Tender Documents

KfW provides a set of Standard Tender Documents (SDO) for use in Projects with financing from KfW and highly recommends the use thereof, especially in the case of ICB in order to ensure an efficient Tender Process in compliance with the Guidelines. If the PEA is obliged to use Tender Documents others than KfW’s SDOs, the PEA has to ensure compliance with the provisions of the Guidelines in particular as per Article 1.5 and the general requirements included in Appendix 5.


1.3 Eligibility Criteria


1.3.1 Rules of Nationality and of Origin


Consulting Services, Works, Goods, Plant and Non-Consulting Services are eligible for KfW financing regardless of the country of origin of the Contractors (including Subcontractors and suppliers for the execution of the Contract), except where an international embargo or sanction by the United Nations, the European Union or the German Government applies.


1.3.2 Grounds for Exclusion

Applicants/Bidders (including all members of a JV and proposed or engaged Subcontractors under the Contract) shall not be awarded a KfW-financed Contract if, on the date of submission of their Application/Offer or on the intended date of Award of Contract, they:

(1) are bankrupt, being wound up or ceasing their activities, are having their activities administered by courts, have entered into receivership, or are in any analogous situation;

(2) have been:

a) convicted by a final judgement or a final administrative decision or subject to financial sanctions by the United Nations, the European Union and/or Germany for involvement in a criminal organisation, money laundering, terrorist-related offences, child labour or trafficking in human beings; this criterion of exclusion is also applicable to legal Persons, whose majority of shares are held or factually controlled by natural or legal Persons which themselves are subject to such convictions or sanctions;

b) convicted by a final court decision or a final administrative decision by a court, the European Union or national authorities in the Partner Country or in Germany for Sanctionable Practise during any Tender Process or the performance of any Contract or for an irregularity affecting the EU’s financial interests, unless they provide supporting information together with their DoU which shows that this conviction is not relevant in the context of the respective KfW financed Contract;

(3) have been subject, within the last five years to a Contract termination fully settled against them for significant or persistent failure to comply with their contractual obligations during Contract performance, unless (i) this termination was challenged and (ii) dispute resolution is still pending or has not confirmed a full settlement against them;


(4) have not fulfilled applicable fiscal obligations regarding payments of taxes either the country where they are constituted or the PEA’s country;

(5) are subject to an exclusion decision of the World Bank or any other multilateral development bank and are listed in the respective table with debarred and cross-debarred firms and individuals available on the World Bank’s website or any other multilateral


development bank, and cannot demonstrate with supporting information along with their DoU that the exclusion is not relevant in the context of the relevant KfW financed Contract;

(6) have given a misrepresentation in supplying the information requested by the PEA as condition to participation in the Tender Process of the relevant Contract.

The Procurement Documents issued by the PEA shall include the above exclusion criteria.


1.3.3 Conflict of Interest

Applicants/Bidders (including all members of a JV and proposed or engaged Subcontractors under the Contract) shall be disqualified in a procurement process if they:


(1) are an affiliate controlled by the PEA or a shareholder controlling the PEA, unless the stemming conflict of interest has been brought to the attention of KfW and has been fully resolved to the satisfaction of KfW;


(2) have a business or a family relationship with a PEA's staff involved in the Procurement Process or the supervision of the resulting Contract, unless the stemming conflict of interest has been brought to the attention of KfW and resolved to its satisfaction;


(3) are controlled by or control another Applicant or Bidder or are under common control with another Applicant or Bidder, receive from or grant subsidies directly or indirectly to another Applicant or Bidder, have the same legal representative as another Applicant or Bidder, maintain direct or indirect contacts with another Applicant or Bidder which allow them to have or give access to information contained in the respective applications or Offers, to influence them or influence the decisions of the PEA;


(4) in the case of a Tender Process for Consulting Services:


a) are engaged in a Consulting Services activity which, by its nature, may be in conflict with the assignment that they would carry out for the PEA;


b) were directly involved in drawing up the ToR or other relevant information for the Tender Process. This shall not apply to consultants who have produced preparatory studies for the project or who were involved in a preceding project phase, insofar as the information they prepared, especially feasibility studies, was made available to all Bidders and the preparation of the ToR was not part of the activity.


c) were during the last 12 months prior to publication of the Tender Process indirectly or directly linked to the project in question through employment as a staff member or advisor to the PEA, and are or were able in this connection to influence the Award of Contract.

(5) in the case of a Tender Processes for Goods, Works, Plant or Non-Consulting Services:


a) prepared or have been associated with a consultant who prepared specifications, drawings, calculations and other documentation for the Tender Process;


b) have been recruited or are proposed to be recruited, themselves or any of their affiliates, to carry out Works supervision or inspection for this Contract.


(6) are state-owned entities, which are not able to provide evidence that (a) they are legally and financially autonomous and (b) they do operate under commercial laws and regulations.



1.4 Sanctionable Practice

The PEA and the Contractors (including all members of a JV and proposed or engaged Subcontractors under the Contract) must observe the highest standard of ethics during the Tender Process and the implementation of the Contract. To such end the PEA undertakes to:

(1) include provisions in all Tender Documents and Contracts financed in whole or in part by KfW whereby the Contractors declare that (i) they did not and will not engage in any Sanctionable Practice likely to influence the Tender Process and the corresponding Award of Contract to the PEA's detriment, and that in the case of being awarded a Contract they will not engage in any Sanctionable Practice;


(2) include in the Contracts, a provision pursuant to which the Contractors must permit KfW and in the case of financing by the European Union also to European institutions having competence under European law, to inspect the respective accounts, records and documents, to permit on the spot checks and to ensure access to sites and the respective project relating to the Tender Process and the performance of the Contract and to have them audited by auditors appointed by KfW.

KfW reserves the right to take any action it deems appropriate to check that these ethics rules are observed and reserves, in particular, the rights to:


(1) reject an Offer for Award of Contract if during the Tender Process the Bidder who is recommended for the Award of Contract has engaged in Sanctionable Practice, directly or by means of an agent in view of being awarded the Contract;


(2) declare misprocurement and exercise its rights on the ground of the Financing Agreement with the PEA relating to suspension of disbursements, early repayment and termination if, at any time, the PEA, Contractors or their legal representatives or Subcontractors have engaged in Sanctionable Practice during the Tender Process or execution of the Contract without the PEA having taken appropriate action in due time satisfactory to KfW to remedy the situation, including by failing to inform KfW at the time they knew of such practices.


1.5 Social and Environmental Responsibility

Projects financed in whole or partly in the framework of Financial Cooperation have to ensure compliance with international Environmental, Social (including issues of sexual exploitation and abuse and gender based violence), Health and Safety (ESHS) standards. As such KfW has

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elaborated Sustainability Guidelines , in line with relevant World Bank/IFC standard, defines a common binding framework to incorporate ESHS standards into the planning, appraisal, implementation, and monitoring of projects financed by KfW.

To assist the PEA during the Tender Process and the implementation of individual Contracts, KfW provides SDOs for ICB procedures which include the relevant ESHS requirements, which need to be adapted to the specific ESHS risks of the individual Contract. The relevant results of an environmental and social impact assessment (ESIA), an environmental and social



3 For further details please see KfW’s Sustainability Guidelines on xxxxx://xxx.xxx- xxxxxxxxxxxxxxxx.xx/XXX/Xxxxxxxx-Xxxxxx/XXX-Xxxxxxxxx- Richtlinien/Nachhaltigkeitsrichtlinie_EN.pdf


management or commitment plan (ESMP/ESCP) or any other document dealing with ESHS risk mitigation in the respective project elaborated during project preparation, shall be taken into

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account in the preparation of the Tender Documents .


If the PEA is obliged to use other Tender Documents than the SDOs, the PEA has to ensure compliance with the ESHS requirements contained therein by integrating the respective ESHS requirements with project specific adaptations into its own Tender Documents.


The PEA ensures that Contractors undertake in the respective Contract to:


(1) comply with and ensure that all their Subcontractors and major suppliers, i.e. for major supply items for the Contract comply with international environmental and labour standards, consistent with applicable laws and regulations in the country of implementation of the respective Contract and the fundamental conventions of the International Labour Organization5 (ILO) and international environmental treaties; and


(2) implement any environmental and social risk mitigation measures, as identified in the environmental and social impact assessment (ESIA) and further detailed in the environmental and social management plan/framework (ESMP/ESMF) as far as these measures are relevant to the Contract and implement measures for the prevention of sexual exploitation and abuse and gender-based violence.

The above-mentioned undertakings by Applicants, Bidders and Contractors are part of the Declaration of Undertaking as per Appendix 1.


1.6 Monitoring and Review by KfW


1.6.1 General


KfW monitors compliance of the Tender Processes with the provisions of the Guidelines and provides No-Objection as outlined below. A No-Objection by KfW shall not relieve the PEA from its contractual obligations under the Funding Agreement.


1.6.2 Procurement Plan

The PEA is required to establish as part of the Funding Agreement a Procurement Plan and implement it accordingly. The Procurement Plan shall identify as far as possible the respective Tender Processes for all KfW-financed Contracts. The initial Procurement Plan shall cover the whole project period and provide details for at least the first 18 months as of the Funding Agreement date. The Procurement Plan shall be reviewed and, if necessary, revised thereafter annually and shall be submitted timely to KfW for No-Objection of the revised version. The Procurement Plan template is enclosed in Appendix 2.


1.6.3 No-Objection - Prior Review


For Tender Processes above the ICB thresholds as per Article 2.1.1 prior review by KfW as outlined below is mandatory. Before publication or notification to third parties, and preferably

4 This applies to projects/programmes appraised after January, 1st 2019 only

5 In the case ILO conventions have not been fully ratified or implemented in the Employer’s country the Applicant/Bidder/Contractor shall, to the satisfaction of the Employer and KfW, propose and implement appropriate measures in the spirit of the said ILO conventions with respect to a) workers grievances on working conditions and terms of employment, b) child labour, c) forced labour, d) worker’s organisations and e) non-discrimination.


before any communication for approval to a national regulatory or supervisory public procurement entity, the PEA shall submit to KfW the documents below as far as applicable in the respective Tender Process. KfW issues No-Objection notices if the proposed documents and decisions comply with the Guidelines:

(1) Tender Notice(s) (specimen see Appendix 2);


(2) Request for Application, including evaluation details (specimen see Appendix 5);


(3) evaluation report of Prequalification, including opening minutes (specimen see Appendix 6);


(4) Request for Proposal or Invitation to Bid, including evaluation method and criteria (specimen see Appendix 5);


(5) evaluation report of Offers, including opening minutes; in the case of separate evaluation of the technical and financial Offer, the technical evaluation report shall be sent to KfW for No- Objection before opening of the financial Offers (specimen see Appendix 6);


(6) if applicable, request for pre-award discussions with the next ranked Bidder and for cancellation of the Tender Process with appropriate justification and proposal for further action (details see Article 2.5.15);


(7) prior to Award of Contract, the draft Contract (including the Declaration of Undertaking); and


(8) if applicable, prior to its signature, any subsequent Contract amendments.


If standardised Tender Documents are used for several similar Tender Processes throughout a project, KfW’s individual No-Objections to the documents listed above under (1), (2) and (4) may be replaced by one common No-Objection to a standardised version of the respective Tender Documents.


1.6.4 No-Objection - Simplified Review


For Tender Processes below the ICB threshold KfW may agree on a simplified review instead of prior review as per Article 1.6.3.


In a simplified review KfW provides No-Objection to the Tender Process upon submission of the draft Contract. In the case of serial procurement using the same Tender Documents and Contract specimen KfW may, after review and No-Objection to the first Tender Process, agree to replace the No-Objection by regular procurement audits or reviews.


1.6.5 No-Objection - Post Review

In general, KfW does not issue an overall No-Objection to the documents listed in Article 1.6.3 based on a post review of the Tender Process after Award of Contract.


1.6.6 Renewed No-Objection

Amendments, modifications or clarifications to the documents or decisions as per Articles

1.6.2. to 1.6.5. taking place after KfW’s No-Objection to it require KfW’s renewed No-Objection if they have significant implications on the project budget, the cost estimate of the Contract, on competition, the agreed technical overall concept, the terms of an assignment or the time schedule of the Tender Process or the implementation of the Contract.


1.6.7 Advance Tendering

Advance tendering means that the PEA initiates the Tender Process prior to the finalisation of the underlying Funding Agreement. If KfW has agreed upon a written request to advance tendering, KfW will issue provisional No-Objections. The No-Objections shall become effective if and only when the respective Funding Agreement enters into force, it being understood that such provisional No-Objection may under no circumstances be understood to constitute a commitment by KfW to finance the Contract, which remains strictly conditional upon the signing of the Funding Agreement.


1.6.8 Prefinanced Contracts

In certain cases, the PEA may have awarded a Contract and financed it in whole or in part without any involvement by KfW beforehand. KfW may agree to finance or reimburse the PEA for payments made under such a Contract. In such a case the PEA is required to demonstrate to the satisfaction of KfW that the Contract to be financed or reimbursed has been procured in compliance with the basic principles as outlined in Article 1.2.1 of the Guidelines. The PEA shall further provide a formal statement on the absence of any cases of Sanctionable Practice during the Tender Process or the performance of the Contract as well as on the eligibility of the Contractor under the Guidelines. In the event that during the Tender Process complaints have been made or during Contract execution claims by the Contractor have been made, KfW's funding shall only be granted if the PEA provides written evidence that such complaints have been handled to the full satisfaction of KfW and that Contractor’s claims are reasonable.


1.6.9 Indirect Financing

In addition to the financing of direct investments in projects or programmes in which individual contractual content (e.g. Consulting Services, Works, Plant, Goods, Non-Consulting Services) is procured, KfW supports other forms of indirect funding for infrastructure and non-infrastructure programmes (e.g. budget support, policy-based lending, result-based lending or joint programs and funds including multi donor trust funds). Under these forms of funding the transfer of funds is linked to the achievement of pre-defined goals or disbursement-linked indicators. The funds thus transferred are managed in accordance with the budgetary procedures of the partner country and/or the PEA generally without monitoring of individual Tender Processes.


Unless otherwise agreed, a fiduciary review of the procedures including the procurement system of the partner country and/or, the procedures and the capacities of the PEA by KfW take place prior to the signing of the Funding Agreement on the basis of the basic principles as outlined in Article 1.2.1 of these Guidelines. An overall positive result of this review is a precondition for indirect financing. Depending on the nature of the operation and the outcome of the review KfW may request the PEA to implement remedial actions and/or may intensify its monitoring.


1.6.10 Sanctions by KfW for Misprocurement

Without prejudice to sanctions set out in Article 1.4. above in the case of an act of Sanctionable Practice, should the KfW reviews reveal at any time the non-compliance with the provisions of the Guidelines by the PEA, KfW is entitled to declare misprocurement and to exercise any of its rights under the Funding Agreement. Where appropriate KfW is entitled to cancel the part of the funds allocated to contracts which have not been procured in compliance with the provisions and is entitled to reimbursement or early repayment in full or in part.

For the avoidance of doubt, if a Contract is awarded following a No Objection, KfW is still entitled to declare misprocurement and to take the measures set out herein if it subsequently


turns out that XxX’x No-Objection was issued on the basis of incomplete, inaccurate or misleading information provided by the PEA, or that the terms and conditions of the Contract were modified without KfW's No-Objection.


2. General Provisions for the Tender Process


2.1 Tender Procedures

The following types of Tender Procedures - in descending order of their level of competition - are available:

▪ International Competitive Bidding (ICB)

▪ National Competitive Bidding (NCB)

▪ Limited Competitive Bidding (LCB)

▪ Price Quotation

▪ Direct Award

All Contracts with an estimated value above the thresholds as per Article 2.1.1. shall be subject to International Competitive Bidding as standard procedure unless exceptions as per Article

2.1.2 to 2.1.5 apply. In any case, a Tender Procedure with a higher level of competition than requested as per Article 2.1.2 until 2.1.5 may be applied at the PEA’s discretion.


The choice of Tender Procedure shall be outlined in the Procurement Plan.


2.1.1 International Competitive Bidding

In the case of ICB, the Tender Notice is published internationally to attract international

6

Persons to participate in the Tender Process. Contracts with an estimated value

thresholds below (ICB thresholds) shall be subject to ICB:

above the


▪ 5,000,000 EUR (five million Euro) for Procurement of Works or Plant; and

▪ 200,000 EUR (two hundred thousand Euro) for Procurement of Goods, Consulting and Non-Consulting Services.


2.1.2 National Competitive Bidding

In the case of NCB, the Tender Notice is published nationally. However, international Persons shall not be excluded from participation. NCB may be chosen for estimated Contract values below the ICB thresholds and exceptionally in duly justified cases for estimated Contract values above the ICB thresholds, provided that


(1) adequate competition in terms of quantity and quality on national level is expected and


(2) the Contract is most likely not of interest on international level in view of the scope f the Contract and its implementation conditions (e.g. project size, logistical reasons, price level).


6 Amounts are inclusive of any options and net of value added taxes (VAT). KfW might exceptionally agree to increased ICB thresholds in duly justified cases.


2.1.3 Limited Competitive Bidding

In the case of LCB, the Tender Process is restricted to a limited number of preselected, qualified Persons, which are invited to submit an Offer.


In general, not less than three qualified Persons shall be requested to submit an Offer. To this end, the PEA will present to KfW a list of the proposed Persons from which Offers will be solicited plus a cost estimate, and will demonstrate their qualification for the envisaged activity

i.e. overall experience, human resources, financial resources and expertise in relation to the subject of the Contract. Where insufficient information is available, Bidders shall be requested to submit such qualification details together with the Offers solicited.

LCB may be chosen


(1) for Contract amounts below the ICB thresholds if a NCB Tender Procedure would be inappropriate in view of the Contract amount and this is permitted by the Public Procurement Regulation or,

(2) for Contract amounts above the ICB thresholds if only a very limited number of Persons is capable of meeting the requirements of the Contract content and this can be demonstrated by extensive market knowledge or,

(3) a fair competition is unlikely in view of the respective market situation (e.g. profit versus non-profit organisations) independent of the Contract amount.


2.1.4 Price Quotation

In the case of Price Quotation, at least three preselected qualified Persons are requested to submit an Offer. The request for quotation shall specify the technical requirements, other relevant information and the evaluation method. The selection of the Contractor is generally based on the lowest price evaluation method.


Price Quotation may only be chosen for the procurement of highly standardised commercially obtainable off-the-shelf Goods and Non-Consulting Services, that do not require elaborated specifications/task descriptions by the PEA, nor elaborated technical Offers by the Bidders (e.g. standard vehicles, office supplies, standard computer hard- and software, transport and distribution of Goods, topographical survey, food supplies). The composition of the Bidders to be invited shall ensure a fair competition, i.e. preferably only local or only international Bidders.


2.1.5 Direct Award

In the case of Direct Award, only one preselected, qualified Person is invited to submit an Offer on the basis of a functional description, a specification or terms of reference, as the case may be, elaborated by the PEA.


The PEA shall verify the appropriateness and competitiveness of the Offer as well as the Contract to be concluded and demonstrate the qualification of the selected Bidder. The outcome of this verification procedure must be documented in writing.


Direct Award may be chosen in particular in the following cases:


(1) Amendment of existing contracts, that means if


a) the total aggregate amount of the amendments is significantly lower than the initial Contract value (as a general rule less than 25 % of the initial Contract value), or the amendment does not justify a new competitive Tender Process, and


b) the nature and scope of the amendment does not result in a substantial modification of the initial Contract content;

(2) In follow-on phases of a project, if all the following criteria are fulfilled

a) where attention was drawn to this potential follow-on phase in the precedent Tender Documents,


b) provided that the first Contract was awarded on a competitive basis,


c) the Contractor’s performance in the previous phase is satisfactory, and


d) the specifications or the terms of reference are largely identical;


(3) Following a cancellation of a Tender Process as per Article 2.5.15, provided

a) no fundamental changes have been made to the original terms and conditions of the Contract, and


b) a further competitive tender procedure is unlikely to produce appropriate results;


(4) For reasons for extreme urgency,


a) brought about by unforeseeable events not attributable to the PEA (e.g. in the cases of natural disaster, crisis or conflict), and


b) where it is impossible to comply with the time limits set for the other procedures and laid down in Articles 2.4.10;

(5) Unique selling point, that means, if due to a specific combination of expertise and experience required, technical reasons/features or the protection of exclusive rights (e.g. patent, copyright), the Contract can only be performed by a specific Person;


(6) Contracts with an estimated Contract amount below 20,000 EUR (twenty thousand Euro).


2.2 Two-Stage and Single-Stage Selection

During a Tender Procedure in general Bidders are required to submit the following documents


(1) Evidence of qualification


(2) Technical part of an Offer and


(3) Financial part of an Offer


either in a single stage or in two stages. Two-Stage Selection

In a Two-Stage Selection the Tender Process is divided into two consecutive stages:


In the first stage, the Prequalification, Applicants are required on the basis of a Request for Application (RfA) to demonstrate their qualification in terms of experience, capacity and resources to perform the Contract. Applicants which fulfil the requirements as per RfA are considered prequalified.


In the second stage prequalified Applicants are invited to submit a technical and financial Offer.


Single-Stage Selection


In a Single-Stage Selection the Tender Process is conducted in one stage, which means Bidders submit their evidence of qualification together with the technical and financial Offer.


Apart from that, the same criteria as laid down for the Two-Stage Selection apply. Selection Methods in different Tender Procedures

In the case of ICB and NCB both selection methods are applicable, and in the case of LCB,

Price Quotation and Direct Award only the One-Stage Selection method applies.


For further details see Article 3.2 concerning selection methods for the procurement of Consulting Services, and Article 4.2 concerning selection methods for the procurement of Works, Goods, Plant and Non-Consulting Services.


2.3 One-/Two-Envelope Submission of Offers

The term one-/two-envelope submission refers to the way the technical and financial part of the Offer are submitted, either in one or in two separate envelops. In a single stage selection without prior prequalification the technical part of the Offer includes the Bidder’s evidence of qualification.

The submission form depends on the evaluation method as described in Article 3.4 and 4.4. Generally, one-envelope submission is adequate, if the evaluation is based on the lowest price. Two-envelope submission is required, if the Bidder’s technical Offer is evaluated on a point- system. In such case, the technical Offer is opened and evaluated first while the financial Offer remains unopened which allows for an unbiased evaluation of the technical Offer. Upon finalisation of the technical evaluation the financial Offers of those Bidders who fulfilled the technical requirements indicated in the Tender Documents will be opened and evaluated further.


The financial Offers of the Bidders who did not fulfil the technical requirements remain unopened and shall be sent back to the Bidders or, if agreed upon, deleted in compliance with legal data protection requirements.


2.4 Preparation of the Tender Process

The following provisions shall be observed during the preparation of the Tender Process. The Tender Documents shall reflect the key information as of the latest version of the Procurement Plan.


2.4.1 Standard Tender Documents and Draft Contract

The PEA is encouraged, especially in the case of an ICB, to use the SDOs (see Article 1.2.4 and 1.5). If the PEA is obliged to use other Tender Documents the RfA, RfP and ITB shall at least include the items as per Appendix 5.

Tender Documents shall include a draft Contract or at least inform on the major contractual and commercial conditions (e.g. payment terms, required guarantees, applicable law, provisions for price adjustment, if any, defects liability period, force majeure), which adhere to the contractual provisions as per Appendix 7.


2.4.2 Standards and Technical Specifications, Brand Names


Standards and technical specifications shall be designed to ensure quality and performance of the contractual content while promoting the broadest possible competition. In the case of an ICB, the Tender Documents shall specify internationally accepted and widespread standards, e.g.


ISO/IEC or EN based standards. If such international standards do not exist or are inappropriate, national standards may be specified. In all cases, the Tender Documents shall state that equipment, material, or workmanship meeting other standards that are at least substantially equivalent to the specified standards will also be accepted.

Specifications shall be based on relevant technical characteristics and/or performance requirements. References to brand names, catalogue numbers, or similar classifications shall be avoided. If it is justified to specify a brand name or catalogue number of a particular manufacturer to clarify an otherwise incomplete specification, the words ‘or equivalent’ shall be added after such a reference to permit the acceptance of Offers for Goods that have similar characteristics and performance at least substantially equivalent to those specified.


2.4.3 Registration and other Administrative Requirements

In the case of ICB the Tender Documents shall provide for foreign participants in Tender Procedures the possibility of submitting documentary evidence of an equivalent nature to those required in the PEA’s country. The registration of an Applicant/Bidder or the presentation of administrative documentary evidence in the country in which the Contract is implemented may be a condition precedent to the Award of Contract (in such case, this shall be stipulated in the Tender Documents), but the absence of documentary evidence at the stage of Prequalification or Submission of an Offer should not lead to an automatic rejection of the Application/Offer.


2.4.4 Joint Ventures

Applicants/Bidders may form JVs with domestic and/or foreign Persons to enhance their qualifications and capabilities. A JV may be for the long term (independent of any particular Contract) or for a specific Contract. Joint Ventures of Applicants/Bidders without joint and several liability of the partners are not acceptable. Applicants/Bidders shall be free to select their JV partners.


2.4.5 Language

In the case of procurement under ICB Tender Documents and Offers shall be prepared in one of the following four international languages at the PEA's discretion: English, French, Spanish or Portuguese. If the national language is different from these international languages, the Tender

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Documents may also be published in the national language and Applicants/Bidders may

be permitted to submit the documents in the national language in addition to the international language version. However, in the case of discrepancies, the text in the international language version of the documents shall prevail. The same applies to the Contract to be concluded and which shall be signed and binding in the international language only.


In the case of procurement under NCB, Tender Documents, Applications/Offers and the Contract to be concluded may be in the national language of the Partner Country only, if different from the four international languages. In such a case the PEA has the responsibility to furnish to KfW an accurate translation of documents subject to KfW’s No-Objection in one of the four international languages, unless otherwise agreed.




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The PEA bears responsibility for the translation and, if applicable, the respect of the copyright.


2.4.6 Currencies

The Tender Documents shall specify the currencies of the Offers, preferably EUR or the currency of the Funding Agreement. The PEA may specify in the Tender Documents that the part of the Offer reflecting local costs (to be incurred in the PEA's country) can be priced in local currency.

For the purpose of Offer evaluation and comparison, the Tender Documents shall indicate an official source for the exchange rates and a reference date (usually prior to the deadline for the submission of bids or proposals) which shall be used to convert all Offers into one currency.


2.4.7 Taxes and Duties


The PEA shall inform Bidders in the Tender Documents on relevant regulations on local taxes and public duties in the Partner Country or if Contractors and its staff are exempted from local taxation. Only identifiable local taxes and public duties directly attributable to a Contract shall be considered. Taxes and duties to be paid outside the Partner Country by the Contractor and its staff are considered to be included in the overhead cost calculation.

In general, Bidders shall indicate in their Offer separately the provisional sums for taxes and duties to be paid in the Partner Country and these provisional sums shall not be considered in the financial evaluation.

The Contract concluded with the winning Bidder shall reflect the relevant provisions of the Tender Documents including the handling of taxes, the mode of payment and remuneration of local taxes and public duties as well as provisions for changes in the relevant national legislation after Contract Award (for details see Appendix 7).


2.4.8 Guarantees and Securities

Any advance payment by the PEA is conditional upon the Contractor submitting an advance payment guarantee for the same amount under terms accepted by the PEA and should not exceed twenty (20) percent of the Contract amount. The PEA may, however, in agreement with KfW, decide to waive this condition depending on the nature or the volume of the Contract and, subject to this being specified in the Tender Documents.


A bid security, a performance security and a retention money security in accordance with the usual business practice of the particular sector are generally required in the case of Works, Plant, Goods and Non-Consulting Services Contracts but generally not in the case of Consulting Services Contracts (details and specimen see Appendix 7 and 8).


2.4.9 Fees for Tender Documents

If a fee is charged for the Tender Documents it shall be reasonable and reflect only the effective cost of their printing and delivery to prospective Applicants/Bidders.


2.4.10 Submission Deadlines

In order to allow Applicants/Bidders to carefully prepare their Application/Offer and to arrange the shipment in time, especially for international Applicants/Bidders, the minimum time periods for the submission of Applications and Offers in ICB Tender Procedures shall be as follows:

(1) preparation of an Application (from the date of the publication of the latest Tender Notice until the Application submission deadline): minimum 30 calendar days; and


(2) preparation of a technical and financial Offer (from the date of the publication of the Tender Notice or the sending of the RfP/ITB to the Bidders or prequalified Applicants until the deadline for submission of Offers): minimum 45 calendar days.

In the case of complex Contracts, the minimum time for the preparation of a technical and financial Offer shall be increased appropriately. In duly justified cases (e.g. intensive clarifications or amendments to Tender Documents) a prolongation of the submission period may be granted, however such an extension should not take place later than 10 calendar days before the submission deadline. Tender Documents shall be made available during the entire submission period.


Any reduction of the above-mentioned minimum time periods for the submission of Applications and Offers require KfW’s prior No-Objection.

In the case of an NCB the relevant provisions of the Public Procurement Regulation applies, in the case of LCB and Price Quotation the deadline for submission of Offers may be reduced appropriately, but should be no less than 20 calendar days. Consequently, the deadline for clarification requests shall be adapted accordingly. For Direct Award the submission deadline shall be appropriate.


Applications/Offers received after the submission deadline shall be rejected, unless late submission was due to events of force majeure (e.g. natural disasters, war). Late submission due to courier services and/or custom clearance shall not be considered as events of force majeure.


2.4.11 Domestic Preference

If applicable laws require the PEA to revert to domestic preference, KfW may agree to it, on the condition that


(1) it is conducted in a fully transparent manner by applying a margin of preference for Goods produced locally, or for contractors for Works from the PEA's country, and that it is expressly provided for in the Tender Documents, and

(2) it shall not lead to a de facto exclusion of foreign competition.

In any case, the domestic preference margin shall not exceed 15 % of the import price excluding taxes in the case of procurement of Goods or 7.5 % of the price in the case of procurement of Works and shall not be applicable to Consulting Services.


2.5 Execution of the Tender Process

The following provisions shall be observed during the execution of the Tender Process.


2.5.1 Publication of Tender Notice

In the case of ICB and NCB the PEA shall arrange a public tender notice, inviting Persons to participate in a Tender Process. The tender notice shall contain at least a brief summary of the tender content and timelines (see Appendix 3). The tender notice is regarded as the official start of a Tender Process.


Tender notices for ICB procedures are mandatorily to be published on the GTAI website, xxx.xxxx.xx, and on a national level in accordance with the applicable Public Procurement Regulations.

Tender notices for NCB procedures shall be published at national level in accordance with the applicable Public Procurement Regulations.


The publication of tender notices may be in electronic or printed form and be complemented by publication in specialised media. However, the publication of tender notices in different media shall be made at the same time and in no case prior to GTAI’s publication.

LCB, Price Quotation and Direct Award procedures do not require the publication of a tender notice.


For the minimum content of a Tender Notice see Appendix 3.


2.5.2 Communications, Clarification of Tender Documents and Pre-Bid Meeting

Communications between the PEA and (potential) Applicants/Bidders during the different

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stages of the Tender Process shall be in writing and the PEA shall treat information

relating the examination, clarification, and evaluation of Applications/Offers in such way as to avoid disclosure of their contents to any other (potential) Applicant/Bidder participating in the Tender Process, or any other party not authorised to have access to this type of information, until the PEA notifies the outcome of the evaluation of Applications/Offers, in accordance with the procedures in the applicable Tender Documents.

Potential Applicants/Bidders may request clarifications to the Tender Documents prior to the deadline for clarification requests stated in the Tender Document. Requests shall be sent in writing to the PEA’s address indicated in the Tender Documents. Any other enquiries or interventions by Applicants/Bidders are prohibited and will lead to the exclusion of the Applicant/Bidder.

The PEA’s response to a request for clarification shall not disclose information which might give an unfair advantage. Any modification to issued Tender Documents shall be introduced in the form of an addendum to the Tender Documents. All clarifications and addenda of Tender Documents shall be in writing. They shall be sent simultaneously to each recipient of the original Tender Documents or published in the same medium as the tender notice in sufficient time to enable potential Applicants/Bidders to take appropriate action, which means no later than ten

(10) calendar days prior to the submission deadline as per Article 2.4.10.


The Tender Documents may state that a pre-bid meeting and/or site-visit for all potential Bidders will be organised by the PEA during the bid submission period in order to obtain on-site information or for the inspection of the available documents. These meetings are exclusively intended to familiarise potential Bidders with the site conditions and the available working documents and shall under no circumstances provide any competitive advantages. The PEA shall keep a written record of such meetings.


2.5.3 One Application/Offer per Applicant/Bidder

Applicants/Bidders (including individual members of any JV) shall submit only one Application/Offer, either in their own name or as part of a JV in another Application/Offer. If an Applicant/Bidder, including any JV member, submits or participates in more than one Application/Offer, all Applications/Offers concerned shall be rejected.


Subcontractors may participate in the capacity as Subcontractor in more than one Application/Offer, unless competition would be adversely affected and this is reflected in the Tender Documents. However, if a Subcontractor’s qualification has been taken into account for


8 The term “in writing” means communicated or recorded in written form. It includes, e.g. mail, e-mail, fax or communication through an electronic procurement system (provided that the electronic system is accessible, secure, ensures integrity and confidentiality, and has sufficient audit trail features).


the qualification of an Applicant this Subcontractor shall only participate in the respective Proposal. If a Subcontractor submits an Application/Offer in its own name, all Applications/Offers concerned shall be rejected.

Key Experts in Proposals for Consulting Services shall not participate in more than one Proposal, unless competition would be adversely affected and this is reflected in the Tender

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Documents. In the case the same Key Expert concerned shall be rejected.

appears in more than one Proposal, all Proposals


2.5.4 Opening of Applications/Offers


The opening of Applications/Offers shall in any case be conducted by a committee consisting of at least two independent members.


In the case of procurement of Works, Goods and Plant the opening of Applications/Offers shall be conducted in public in the presence of representatives of the Applicants/Bidders that wish to attend. Such a meeting shall be held very shortly after the deadline time for the submission of the Applications/Offers at the place and time specified in the Tender Documents. The opening shall take place regardless of the number of Applications/Offers received, provided that the Applications/Offers are received before end of the Application/Offer submission deadline.

When documents (evidence of qualification, technical and financial Offer) are to be submitted in separate envelopes with subsequent evaluation, an opening session shall take place for each envelope. The opening of the second envelope requires KfW’s prior No-Objection to the evaluation result of the preceding envelope, unless otherwise agreed.


In the public opening session the following shall be read aloud:


• the name of the Applicant/Bidder and at the public opening of the financial Offers


• the price of the Offer,


• including any alternative Offers or discounts.


For each (public or non-public) opening session minutes shall be prepared and signed by all members of the committee, and optionally by the representatives of the Bidders that wish to do so.


2.5.5 Preliminary Examination of Applications/Offers


The preliminary examination is to verify if the Applicants/Bidders are eligible and if the Applications/Offers received are substantially complete as required by the Tender Documents before proceeding to the detailed evaluation. Applications/Offers from non-eligible Applicants/Bidders or that are not substantially complete shall be rejected. Applications/Offers shall not be rejected for minor technical or administrative nonconformities.


9 An individual (natural Person) which is not part of the regular staff (“freelancer”) but engaged temporarily as Key Expert for the relevant Contract shall not be considered as Subcontractor in this context.


2.5.6 Evaluation of Evidence of Qualification

Following the preliminary examination, the next step in the evaluation of an Application/Offer is the Applicant’s/Bidder’s evidence of qualification. Depending on the nature of the Contract the evaluation of the qualification might be on a pass/fail basis and/or through a scoring system.

Qualification of Applicants/Bidders


The evaluation of the evidence of qualification focuses solely on the respective Applicant/Bidder and shall not take into account any qualifications of its subsidiaries, parent entities, affiliates or any other Person different from the Applicant/Bidder, unless they are associated in the form of a JV with joint and several liability.


Qualification of Subcontractors


The qualification of Subcontractors is usually not taken into account unless the Applicant explicitly requests for it. In such a case the Applicant is obliged to include the respective performance of the Subcontractor bindingly in the Offer as indicated in the Application.


Modifications after Submission of Application


In the case of Two-Stage Selection, prequalified Bidders shall request PEA’s approval for any modification in their legal status or in the composition of a JV. Such approval shall not be rejected by the PEA unless the proposed modification would result in a deterioration of the position of the Bidder with respect to the initial qualification.


For further details on qualification and evaluation see Article 3.3 for procurement of Consulting Services, and Article 4.3 for procurement of Works and Plant.


2.5.7 Information and Publication of Prequalified Applicants

The Employer shall notify all Applicants in writing of the names of those Applicants who have been prequalified. In addition, those Applicants who have been disqualified will be informed separately.

In the case of an ICB and NCB the list of prequalified Applicants who will be invited to submit an Offer (prequalification-result notice), shall be published by the PEA after KfW’s No-Objection to the prequalification evaluation report on GTAI’s website, in the case of an ICB, and preferably in the same medium in which the original tender notice was published, in the case of an NCB.


For the minimum content of a Prequalification notice please see Appendix 3.


2.5.8 Evaluation of Offers

The evaluation criteria and methodology shall be appropriate in view of the type, nature, market conditions, and complexity of the Contract content as detailed in Articles 3.4 and 4.4. The evaluation of the Offers shall strictly follow the methods and criteria as specified in detail in the Tender Documents.

In the case of Two-Stage Selection, criteria evaluated in the Prequalification shall not be evaluated a second time. However, the PEA may request Bidders to confirm that their qualification as of their Application remains unchanged.

The technical evaluation of Proposals/Bids is to verify if and to which extent the Offer fulfils the technical requirements stipulated in the Tender Documents. Depending on the evaluation methodology the technical evaluation is on a pass/fail basis or on a point system.


The financial evaluation is to correct arithmetical errors, to verify if the offered technical content and the financial Offer correspond and for price adjustments due to missing items or due to the evaluation method to the extent specified in the Tender Documents.


Abnormally Low Bids


An abnormally low Bid is one in which the Offer price, in combination with other elements of the Offer, appears so low either in comparison with the PEA’s estimate or with the average of competing Offer or in the case of Consulting Services with the estimated expert-month that it raises material concerns with the PEA as to the capability of the Bidder to perform the Contract for the offered price. The PEA shall ask for written clarifications and shall require detailed price breakdown from the Bidder concerned.


The Offer in question shall be rejected in the absence of satisfactory answers from the Bidder to those requests for clarification or if the detailed price breakdown evidences one or several inconsistencies between the technical Offer and the price offered and therefore reasonable doubts persist as to whether the required Contract content can be provided at the price offered and if this is reasonably expected to pose a considerable risk to the performance of the Contract.


2.5.9 Clarification of Applications/Offers during Evaluation

To assist in the examination, evaluation, and comparison of the Applications/Offers, the PEA may, at its discretion, ask Applicants/Bidders for a clarification, given a reasonable time for a response. Any clarification submitted by an Applicant/Bidder that is not in response to a request by the PEA shall not be considered. The PEA’s request for clarification and the response shall be in writing. No change, including any voluntary increase or decrease, in the prices or substance of the Offer shall be sought, offered, or permitted, except to confirm the correction of arithmetic errors discovered by the PEA during the evaluation of the Offers, in accordance with the Tender Document.


2.5.10 Extension of Offer Validity

If an extension of the Offer validity period is necessary, this shall not lead to changes in the Offer prices. The extension entitles the Bidders to withdraw their Offers upon expiry of the original binding period without allowing the bid bond to be drawn. KfW reserves the right to refrain from financing if the Tender Process is unduly delayed.


2.5.11 Evaluation Report

The PEA’s evaluation committee shall prepare and sign a detailed report on the evaluation of Applications/Offers with the minimum content and in the format as described in Appendix 6.


The PEA shall submit to KfW the evaluation report and award recommendation in a timely manner to permit KfW’s comment to be issued before expiry of the validity period. KfW reserves the right to refrain from financing if the report is not submitted in due time.


2.5.12 Pre-Award Discussions

The PEA shall award the Contract during the Offer validity period to the Bidder who’s Offer has been evaluated as responsive, lowest evaluated Bid or highest ranked Offer.


In exceptional cases, the procurement can give rise to discussions with the first ranked Bidder after final Offer evaluation prior to Award of Contract.


The Bidder shall not be required as a result of the pre-award discussions to provide additional Consulting Services, Works, Goods, Plant or Non-Consulting Services that are not set out in the


Tender Documents or to modify its initial Offer as a condition to the Award of Contract nor to modify unit prices except for the correction of arithmetical or computational errors.

The pre-award discussions shall also determine the taxes and duties that shall be due locally (they may be estimated on a provisional basis in the financial Offer but are not to be evaluated) and decide the manner in which they will be paid for, taking into account the provisions set out in the RfP/ITB.


The content of such pre-award discussions shall not be legally binding before the Award of Contract. It is highly recommended to integrate modifications resulting from such discussions to the relevant parts of the contractual documents (e.g. time schedule, terms of reference, specifications, price schedules, Contract) as far as possible, otherwise the signed minutes of pre- award discussions shall form part of the Contract.


In the case of failure, the PEA may enter into pre-award discussions with the next ranked Bidder, subject to prior No objection by KfW.


2.5.13 Information of Bidders and Award of Contract

Upon successful completion of the pre-award discussions, if any, the PEA shall inform all Bidders on the result of the Tender Process in writing and subsequently award the Contract to the successful Bidder.

The information sent to the Bidders shall contain the name and the Contract amount of the winning Bidder and, if relevant, the combined Offer scores of the winner and the respective Bidder.


2.5.14 Publication of the Result of the Tender Process

In the case of an ICB and NCB upon completion of the Tender Process the PEA shall publish the result of the Tender Process (award notice) on GTAI’s website, in the case of an ICB, and preferably in the same medium in which the original tender notice was published, in the case of an NCB.

For the minimum content of the award notice please see Appendix 3.


2.5.15 Cancellation of a Tender Process

A Tender Process shall be considered unsuccessful when


(1) there has been a lack of competition, or


(2) all Offers received are not substantially compliant with the requirements of the Tender Documents, or


(3) none of the technical Proposals meet the minimum requirements, or

(4) all the offered prices are substantially higher than the latest updated cost estimate or the available budget.

A lack of competition shall not be determined solely on the basis of the number of Offers received. Even when only one Offer is submitted, the Tender Procedure may be considered valid, if (i) the procurement was satisfactorily published, (ii) the qualification criteria were not unduly restrictive and (iii) prices are reasonable in comparison to market values.


If the PEA rejects all Offers, the PEA shall analyse the causes that led to this situation (inadequate publication, prequalification requirements, conditions and scope of Contract, design and specifications, scope of services, etc.) and remedy this before relaunching the RfP/ITB. The


PEA shall not reject all Offers and relaunch a RfP/ITB using the same unmodified Tender Documents solely for the purpose of seeking lower prices.


If the rejection is due to non-compliance with the Tender Documents or technical requirements, the PEA should after thorough investigation adjust the Tender Documents or the technical requirements. In such case, the PEA may request new Offers from all of the initially prequalified Applicants if a Prequalification had taken place or those that submitted an Offer in response to the initial RfP or ITB.


If the price of the lowest evaluated and compliant Offer significantly exceeds the latest cost estimate or the available budget, the PEA shall investigate the reasons for such overrun and envisage increasing the budget, if the increased prices are justifiable or re-launching the RfP/ITB as per the provisions above. Alternatively, the PEA may, enter into negotiations with the lowest evaluated Bidder to seek to obtain a satisfactory Contract on the basis of a reduction of the scope of the Contract and/or a modification to the sharing of risks and responsibilities in order to reduce the Contract price. This is only allowed when the modifications envisaged do not call into question the initial ranking of Offers following the evaluation.

The cancellation of a Tender Process and the subsequent steps require KfW’s prior No- objection.


2.5.16 Publication of Tender Process Cancellation

In the case of an ICB and NCB upon cancellation of a Tender Process the PEA shall publish corresponding information (cancellation notice) on GTAI’s website, in the case of an ICB, and preferably in the same medium in which the original tender notice was published, in the case of an NCB.


For the minimum content of the cancellation notice please see Appendix 3.


2.5.17 Debriefing

Unsuccessful Applicants or Bidders may make a written request to the PEA for a debriefing. The PEA shall provide a timely and meaningful debriefing to the Applicant/Bidder informing on major shortcomings and weaknesses of the Application, respectively on the Offer in relation to the winning Bidder. No additional information shall be disclosed, the debriefing shall not include point- by-point comparisons with other Applications/Bidder’s Offers and information that is confidential.


2.6 Procurement Related Complaints

Applicants/Bidders who consider that actions or decisions by the PEA in the course of the Tender Process result in an unfair disadvantage may file a procurement related complaint. Unless the complaints mechanism in the Public Procurement Regulation provides otherwise, such a complaint shall be addressed in writing to the PEA, with copy to KfW, detailing the grounds for the complaint with reference to the applicable provisions in the Tender Documents or other applicable regulations. Upon receipt of such a complaint the PEA shall promptly handle the complaint and respond to the complainant in writing detailing the result of the complaint’s handling. Should the handling of the complaint by the PEA not be possible within three (3) working days after the receipt of the complaint the PEA should at least acknowledge its receipt and respond to the complainant with the results of the complaint’s handling within ten (10) working days from the acknowledgment of the receipt.


The PEA shall ensure that all complaints and its handling in a KfW financed Tender Process are brought to the knowledge of KfW for monitoring in due time. The award of a Contract shall not take place until all complaints have been handled adequately.



2.7 Electronic Procurement

The PEA may use an electronic system to distribute tender documents, provided that KfW is satisfied with its adequacy. If Tender Documents are distributed electronically, the electronic system shall be secure to avoid modifications to the Tender Documents and shall not restrict the access of Applicants and Bidders to the Tender Documents. The PEA may also use an electronic system permitting Applicants and Bidders to submit Applications and Offers by electronic means, provided KfW is satisfied with the adequacy of the system, including, inter alia, that the system is secure, maintains the confidentiality and integrity of Applications and Offers submitted, and employs acceptable management procedures to establish date and time of submission, and facilitate modification and withdrawal.

The use of e-reverse-auctions as part of an e-procurement system shall be limited to highly standardised and unambiguously specified Goods or Non-Consulting Services if there is adequate competition among Persons and the lowest price only is considered for award.


3. Provisions for Procurement of Consulting Services


3.1 Tender Agents and Agency Contract

At the PEA’s discretion or upon KfW’s recommendation assistance from a specialised consultant (so-called tender agent) may be obtained for certain steps of the Tender Process. With the exception of the Award of Contract, the assistance may range from individual support to a complete delegation of the PEA’s respective tasks and shall be agreed upon in the Contract between PEA and Tender Agent. The No-Objection provisions as set out in Article 1.6 apply unchanged.


In exceptional cases, KfW may assist the PEA in the Tender Process upon express request and based on an agency contract between PEA and KfW. If not agreed otherwise, such an agency contract encompasses the delegation of the entire Tender Process to a tender agent with KfW signing the Contract on behalf of the PEA.


3.2 Two-Stage Selection for Consulting Services

In the case of an ICB and in the case of an NCB above the thresholds as per Article 2.1.1 the Two-Stage Selection with Prequalification of Applicants is the standard selection procedure for the procurement of Consulting Services. A Single-Stage Selection is not recommended in such cases as the latter may result in a reduced number of Bidders due to the fact that the elaboration of an Offer comprising the evidence of qualification, a technical and financial Proposal represents a significant effort without increasing the likelihood of Award of Contract.


3.3 Pre-Qualification for Consulting Services

In order to establish the qualification of eligible Applicants to perform the Contract the following criteria shall be taken into account:

(1) Overall financial situation and minimum turn-over in relation to the estimated Contract value;


(2) Experience in implementing similar projects in the subject matter, in the relevant sector,, function and role as per the requirements of the project (e.g. studies, surveys, design, tendering and contracting, technical/organisational/financial project management, ESHS, maintenance and operation, specialised technical/legal/management expertise), generally within the last five years;


(3) Geographical experience in similar countries or environments;


(4) Access to expertise relevant for the assignment, possibly supplemented with external resources and available own human resources and capacities, including backstopping capacities.

The qualification requirements shall be chosen in relation to the size and complexity of the Contract content.


Applications are considered responsive if they comply with all pass/fail-criteria and score at least 70 % of the total points. Only Applicants who submitted a responsive Application are considered as qualified to perform the Contract. A ranking of all qualified Applicants will be established based on their score and if not otherwise laid down in the Tender Documents, the five top ranked Applicants shall be invited to submit a Proposal in the second stage. Should the number of prequalified Applicants be below the predefined number as per Tender Documents the Tender Process may be continued with these prequalified Applicants.

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For further details see Appendix 4 and KfW’s SDOs


3.4 Evaluation Methods for Consulting Services

The following evaluation methods may be used for evaluation of Proposals, with Quality and Cost-Based Selection (QCBS) being the recommended standard method.


3.4.1 Quality and Cost-Based Selection (QCBS) The two-envelope submission applies to QCBS. Technical Evaluation

The technical evaluation shall focus on the proposed concept and methodology as well as on the proposed staff for the execution of the Contract as detailed in Appendix 4 Technical Proposals are considered responsive if they achieve a technical score of at least 75 % of the total points for the technical Proposal. Non-responsive technical Proposals are rejected at this step.


Financial Evaluation


If payments are based on agreed hourly, daily, weekly, or monthly rates for staff and on reimbursable items using actual expenses and/or agreed unit prices (time-based Contract) as per RfP, the evaluation committee will (a) correct any computational or arithmetical errors and adjust the prices if they fail to reflect all inputs, which, in accordance with the RfP have to be indicated and priced separately, using the highest rates for the corresponding items indicated in the financial Proposals of competing Proposals.


In the case of a discrepancy between the technical and financial Proposals in indicating quantities of input, the technical Proposal prevails and the evaluation committee shall correct the


10 For further details about the evaluation of qualification criteria see KfW’s SDOs available at www.kfw- Xxxxxxxxxxxxxxxx.xx


quantification indicated in the financial Proposal so as to make it consistent with that indicated in the technical Proposal, apply the relevant unit price included in the financial Proposal to the corrected quantity, and correct the total Proposal cost.


If payments are linked to outputs/deliverables, such as studies, design services, elaboration of Tender Documents (lump-sum Contract) as per RfP, the Consultant is deemed to have included all prices in the financial Proposal and therefore no price adjustments shall be made. The total price, net of taxes shall be considered as the offered price.

If the Contract combines time based and lump sum services the evaluation shall apply these provisions accordingly.


Notwithstanding the above, the offered price may be adjusted for reimbursable items to allow for comparison, but only for such items explicitly requested to be offered in the RfP.


Weighting


The weighted technical score of a technical Proposal will be calculated by multiplying the technical score of the respective Proposal with the technical weight (in percent).

The weighted financial score of a financial Proposal will be calculated by multiplying the ratio of the evaluated price of the lowest financial Offer to the evaluated price of the respective financial Proposal with the financial weight (in percent).


The overall score will be calculated by summing up the technical and financial score per Proposal and the Proposal selected for Award of Contract is the one that obtains the highest overall score. The weightings should generally be 80% for the technical Proposal and 20% for the financial Proposal (for more Details see Appendix 4).


3.4.2 Least Cost Based Selection (LCS)


The Contract is awarded to the lowest-priced, substantially responsive Proposal. A Proposal is considered responsive, if it complies with the minimum requirements as defined in the Tender Documents. This selection method may only be envisaged for standard, non-complex Consulting Services of limited cost (e.g. translation work).


3.4.3 Quality Based Selection (QBS)

The two-envelope submission applies to QBS.


The QBS method may be used on exceptional basis for the procurement of Consulting Services which cannot be functionally described, are not yet marketable and require significant creative input by Bidders. This method may be used for complex projects or projects with major technical impacts, but in this case, caution is required as it carries a risk of technical overpricing and requires an extremely good knowledge of market prices on the part of the PEA in order to conduct the financial evaluation properly. It may also be used for the short-term recruitment of individual consultants with limited size, if the rates for such services are well known.

The Contract is awarded to the highest scored technical Proposal.


3.4.4 Fixed Budget Based Selection (FBS)

A maximum budget is indicated in the RfP and the highest scored technical Proposal is selected, provided that the price Proposal is within the budget. The maximum budget must be determined appropriately (neither overestimated nor underestimated on the basis of a detailed assessment


of the expert-months/days required and of market prices). Subject to this important reservation, this method may be worthwhile, notably in the case of small studies and simple services.


3.5 Availability and Replacement of Proposed Key Staff before Award of Contract


With the submission of the Proposal the Bidder confirms the unrestricted availability of the proposed Key Experts in accordance with the requirements defined in the Tender Documents in the case of Award of Contract. After finalisation of the evaluation and before Award of Contract or any pre-award discussions, whichever is first, the PEA shall request the consultant proposed for Award of Contract to confirm the availability of the proposed Key Experts.


Should any of the proposed Key Experts during the initial Proposal validity period become unavailable for duly justified reasons beyond the control of the consultant (e.g. sickness or accident), the consultant shall propose an alternative expert with an equal or better qualification. If the replacement Key Expert’s qualification is not equal or better than the qualification of the initial candidate the Proposal shall be rejected.


If an extension of the Proposal validity period becomes necessary, Bidders shall be requested to confirm the availability of the Key Experts along with their response to the extension request by the PEA. At this stage Bidders shall be allowed to propose replacement Key Expert(s) without justification. The replacement Key Expert(s) shall have equal or better qualification otherwise the Proposal shall be rejected.


4. Provisions for Procurement of Works, Plant, Goods & Non- Consulting Services


4.1 Engagement of a Consultant

Planning, design, tendering, contracting and implementation supervision of Works, Plant and Goods Contracts requires considerable and frequently interdisciplinary expertise and absorbs significant resources. Therefore, KfW highly recommends the engagement of specialised and experienced consultants to assist the PEA during project preparation and implementation.


4.2 Single- and Two-Stage Selection

For Works and Plant Contracts, whether a Single or a Two-Stage Selection is applied depends on the nature and complexity of the assignment.


For Goods and Non-Consulting Service Contracts generally a Single-Stage Selection is appropriate.

In any case only Bidders with adequate qualification, experience and financial capacity in relation to the Contract content and volume shall be considered for the evaluation of Bids according to the provisions included in the Tender Documents.


4.3 (Pre-)Qualification for Works and Plant Contracts

In order to establish the qualification of eligible Applicants/Bidders to perform the Contract the following criteria shall be taken into account:


(1) Overall financial situation and minimum turn-over in relation to the estimated Contract value, including pending litigation,

(2) General and specific construction experience in implementing similar projects, generally within the last five years, and

(3) Experience, capacity and handling of environmental, health and safety (ESHS) issues, with special focus on occupational health and safety (OHS) on site. Depending on the


ESHS risks the Tender Documents shall include a minimum score/level to be achieved by Applicants/Bidders.

The qualification requirements shall be chosen in relation to the size and complexity of the Contract and shall not unduly limit the competition.


All Applicants/Xxxxxxx considered qualified will be invited to submit a Bid in the case of Two-Stage Selection, or their Bids will be considered further in the case of Single-Stage Selection.


4.4 Evaluation Methods for Works, Plant, Goods and Non-Consulting Services


4.4.1 Lowest Price Evaluation


When applying the lowest price evaluation method, the Contract will be awarded to the Bidder who is qualified to perform the Contract and whose financial Bid has been determined to be the responsive, lowest evaluated Bid (after correction of arithmetical errors) and is substantially responsive to the requirements contained in the Tender Documents.


This evaluation method is appropriate for Works Contracts for which a detailed design (including drawings, itemised bill of quantity and technical specifications) is provided in the Tender Documents. The lowest price evaluation method is also suitable for highly standardised off-the shelf Goods and Non-Consulting Services.


This method relies on the price as award criterion.


4.4.2 Bonus-Malus Adjusted Price Evaluation

This evaluation method is partly identical with the lowest price evaluation method. However, once the lowest evaluated price is determined this figure may be adjusted either by a factor below or above 1.0 or by a positive or negative price mark-up. The adjustment factor or the price adjustment is derived by comparing the values of technical parameters of major technical components offered by Bidders to reference values and calculate the adjustment accordingly as indicated in the Tender Document.


Such a method allows to take into account during the evaluation certain features or parameters of individual items of the Bid or the whole of it by charging such aspects financially with a bonus or a malus. For example when purchasing power transformers or generators the Tender Documents may specify a target efficiency ratio and during Bid evaluation each percent above or below that value will be credited or charged by a certain fixed amount or a percentage of the Bid price.

The method of such a price adjustment and the reference values shall be clearly defined in the Tender Documents and should be limited to few important items whose features or parameters are easily verifiable and measurable.

The award criterion of this evaluation method is the lowest adjusted price.


4.4.3 Weighted Evaluation

In a weighted evaluation scheme each of the technical and the financial Bids are evaluated separately and are attributed a score. The weighted score of both are added up to the combined score. The Bid with the highest evaluated combined score will be awarded the Contract.

The application of such an evaluation scheme is suitable in the cases where the PEA provides in the Tender Documents a functional description of the Contract content instead of a detailed design. Bidders elaborate and submit on this basis a technical Bid of their own which is evaluated strictly in accordance with the criteria published in the Tender Documents.


The evaluation procedure follows the steps as indicated for QCBS for consultants outlined in Article 3.4.1. The Tender Documents shall specify a minimum score for the technical Bid to be considered as technically responsive. The weighting of the technical Bid should not exceed the weighting of the financial Bid.


4.4.4 Life Cycle Cost Evaluation (LCC)

The LCC evaluation method takes into account the cost occurring during the whole life-cycle of the Contract content (e.g. Works, Goods, etc.) such as:

(1) Investment cost (e.g. the purchase price incl. all associated cost elements),


(2) Operation and maintenance cost (e.g. energy, consumables, spare parts, repair),


(3) End of life costs (e.g. for removal, disposal, recycling) and costs attributed to environmental externalities (e.g. emissions of greenhouse gases or pollutants), to be considered only in exceptional cases, if the local market provides reliable and verifiable cost figures (end of life cost) or if internationally recognised calculation methods are used (environmental cost).

This evaluation method may be used when the additional cost of (2) and, if applicable (3) over the specified life of the Contract content are estimated to be considerable in comparison with the initial investment cost (1) and may vary among different Bids due to different technical solutions proposed by Bidders. The Tender Documents shall clearly and in detail specify the calculation methods and parameters (e.g. calculation period, discount rate and other factors and parameters to be taken into account). The application of the LCC evaluation method requires highly qualified expertise for the elaboration of Tender Documents and Bid evaluation.


4.5 Alternative Bids

The Tender Documents may allow Bidders to submit alternative Bids, in order to minimise costs or permit technically attractive solutions. The Tender Documents shall, in such case, indicate clearly the evaluation method of such alternative Bids.


4.6 Discounts

A Bid may include an unconditional discount, which is always taken into account during the evaluation. The Bid shall indicate the manner in which the discount is to be applied.

If the Bid is divided into several lots, Bidders may also offer one or several conditional discounts in the case they would be awarded several lots. In such a case, this discount shall only be taken into consideration under the terms indicated in the Tender Documents and provided that all Bids, for all lots, are submitted and opened at the same time.


4.7 Transport and Insurance

Bidders shall submit their Bid according to the international rules established by the International Chamber of Commerce for the interpretation of commercial terms used for international trade (Incoterms). The Bids shall preferably be requested on the basis of CIP (Carriage and Insurance Paid to a named place of destination) for Goods.

The Contract content shall be insured to an appropriate and customary extent against risks that may arise during transport and the implementation of the project. Its replacement or recovery by means of the insurance must be possible. The insurance policies should be established in the currency of the relevant Contract.



4.8 Force Account

Recourse to force account, that is the implementation of Works using the PEA's own personnel and equipment, may in certain cases be envisaged if it is the only available method, namely, but not exclusively, in the case of Works which cannot be quantified in advance, small and scattered Works (routine maintenance on an infrastructure network) or emergency Works, and is subject to KfW's prior consent.


To obtain KfW's prior consent, the PEA shall provide KfW with:

(1) information justifying the use of force account,

(2) information evidencing its capacity of performing the said work, and

(3) the implementation schedule along with a breakdown of the estimated cost.


5. Procurement not subject to Public Procurement Regulations, Financial Intermediaries and Special Cases


5.1 Procurement not subject to Public Procurement Regulations

Certain PEAs may, due to their legal status, not be bound to the Public Procurement Regulations in the Partner Country (e.g. private banks and firms, privatised entities, NGOs, UN organisations). Subject to prior approval of KfW, the PEA may use their own internal procurement regulations or, in the absence thereof shall rely on the provisions of the Guidelines.

PEAs not subject to Public Procurement Regulations and having no internal procurement regulations may elaborate a project specific procurement manual, which presents the procedures they intend to apply for procurement of Consulting Services, Works, Goods, Plant, or Non- Consulting Services.

If PEAs apply their existing or newly elaborated procurement regulations, they shall confirm that these comply with the basic principles of the Guidelines as outlines in Article 1.2.1 and reflect commercial state-of-the-art business practice in the relevant sector. In the case of a conflict between the Guidelines and the PEAs procurement regulations KfW and the PEA will agree on appropriate provisions prior to any procurement.


KfW reserves the right to request the PEA to publish tender notices as outlined in Article 2.5.1 especially for major Contracts above the ICB thresholds.

The No-Objection provisions as laid down in these Guidelines apply accordingly as agreed upon between PEA and KfW.


5.2 Financial Intermediaries

In certain cases KfW’s funding for infrastructure projects is provided via financial intermediaries to final beneficiaries who are subject to the Public Procurement Regulation due to their legal status (e.g. municipalities, state owned entities). In such cases KfW requires that the procurement procedures applied comply with the basic principles of the Guidelines as outlined in Article 1.2.1. Unless otherwise agreed in the Funding Agreement, the financial intermediary will monitor the procurement by the final beneficiaries and subsequently report on it as part of its regular reporting procedures to KfW.


For procurement undertaken by the financial intermediary for its own needs (e.g. Consulting Services, Goods) the provisions of the Guidelines apply.



5.3 Specific Case of Concessions and Output Based Contracts

In the cases where KfW finances projects implemented under a public concession or in which the Contractor is paid for outputs (e.g. BOT models, auctions, least cost subsidy selection, supply of energy), the following applies:

(1) If the concessionaire or Contractor has been selected following a fair and transparent competitive procedure which is acceptable to KfW the said concessionaire or Contractor may freely procure Works, Goods, Plant, No-Consulting Services or Consulting Services for the fulfillment of the Contract using its own procedures unless the Tender Documents for the Contract provide otherwise; or

(2) If the selection of the concessionaire took place without competition the provisions of the Guidelines shall apply.


Appendices


---------------------------------------------------------------------------------------


Appendix 1


Declaration of Undertaking


11

Reference name of the Application/Offer/Contract: ("Contract")

To: ("Project Executing Agency")


1. We recognise and accept that KfW only finances projects of the Project Executing

12

Agency (“PEA”) subject to its own conditions which are set out in the Funding

Agreement it has entered into with the PEA. As a matter of consequence, no legal relationship exists between KfW and our company, our Joint Venture or our Subcontractors under the Contract. The PEA retains exclusive responsibility for the preparation and implementation of the Tender Process and the performance of the Contract.

2. We hereby certify that neither we nor any of our board members or legal representatives nor any other member of our Joint Venture including Subcontractors under the Contract are in any of the following situations:

2.1) being bankrupt, wound up or ceasing our activities, having our activities administered by courts, having entered into receivership, reorganisation or being in any analogous situation;

2.2) convicted by a final judgement or a final administrative decision or subject to financial sanctions by the United Nations, the European Union or Germany for involvement in a criminal organisation, money laundering, terrorist-related offences, child labour or trafficking in human beings; this criterion of exclusion is also applicable to legal Persons, whose majority of shares are held or factually controlled by natural or legal Persons which themselves are subject to such convictions or sanctions;

2.3) having been convicted by a final court decision or a final administrative decision by a court, the European Union, national authorities in the Partner Country or in Germany for Sanctionable Practice in connection with a Tender Process or the performance of a Contract or for an irregularity affecting the EU’s financial interests (in the event of such a conviction, the Applicant or Bidder shall attach to this Declaration of Undertaking supporting information showing that this conviction is not relevant in the context of this Contract and that adequate compliance measures have been taken in reaction);

2.4) having been subject within the past five years to a Contract termination fully settled against us for significant or persistent failure to comply with our contractual obligations during such Contract performance, unless this termination was challenged and dispute resolution is still pending or has not confirmed a full settlement against us;

2.5) not having fulfilled applicable fiscal obligations regarding payments of taxes either in the country where we are constituted or the PEA's country;

2.6) being subject to an exclusion decision of the World Bank or any other multilateral development bank and being listed on the website xxxx://xxx.xxxxxxxxx.xxx/xxxxxx or respectively on the relevant list of any other multilateral development bank (in the event of such exclusion, the Applicant or Bidder shall attach to this Declaration of



11 Capitalised terms used, but not otherwise defined in this Declaration of Undertaking have the meaning given to such term in KfW’s “Guidelines for the Procurement of Consulting Services, Works, Plant, Goods and Non- Consulting Services in Financial Cooperation with Partner Countries”.

12 The PEA means the purchaser, the employer, the client, as the case may be, for the procurement of Consulting Services, Works, Plant, Goods or Non-Consulting Services.


Appendix 1


Undertaking supporting information showing that this exclusion is not relevant in the context of this Contract and that adequate compliance measures have been taken in reaction); or

2.7) being guilty of misrepresentation in supplying the information required as a condition of participation in the Tender.

3. We hereby certify that neither we, nor any of the members of our Joint Venture or any of our Subcontractors under the Contract are in any of the following situations of conflict of interest:

3.1) being an affiliate controlled by the PEA or a shareholder controlling the PEA, unless the stemming conflict of interest has been brought to the attention of KfW and resolved to its satisfaction;

3.2) having a business or family relationship with a PEA's staff involved in the Tender Process or the supervision of the resulting Contract, unless the stemming conflict of interest has been brought to the attention of KfW and resolved to its satisfaction;

3.3) being controlled by or controlling another Applicant or Bidder, or being under common control with another Applicant or Bidder, or receiving from or granting subsidies directly or indirectly to another Applicant or Bidder, having the same legal representative as another Applicant or Bidder, maintaining direct or indirect contacts with another Applicant or Bidder which allows us to have or give access to information contained in the respective Applications or Offers, influencing them or influencing decisions of the PEA;

3.4) being engaged in a Consulting Services activity, which, by its nature, may be in conflict with the assignments that we would carry out for the PEA;

3.5) in the case of procurement of Works, Plant or Goods:

i. having prepared or having been associated with a Person who prepared specifications, drawings, calculations and other documentation to be used in the Tender Process of this Contract;

ii. having been recruited (or being proposed to be recruited) ourselves or any of our affiliates, to carry out works supervision or inspection for this Contract;

4. If we are a state-owned entity, and compete in a Tender Process, we certify that we have legal and financial autonomy and that we operate under commercial laws and regulations.

5. We undertake to bring to the attention of the PEA, which will inform XxX, any change in situation with regard to points 2 to 4 here above.

6. In the context of the Tender Process and performance of the corresponding Contract:

6.1) neither we nor any of the members of our Joint Venture nor any of our Subcontractors under the Contract have engaged or will engage in any Sanctionable Practice during the Tender Process and in the case of being awarded a Contract will engage in any Sanctionable Practice during the performance of the Contract;

6.2) neither we nor any of the members of our Joint Venture or any of our Subcontractors under the Contract shall acquire or supply any equipment nor operate in any sectors under an embargo of the United Nations, the European Union or Germany; and

6.3) we commit ourselves to complying with and ensuring that our Subcontractors and major suppliers under the Contract comply with international environmental and labour standards, consistent with laws and regulations applicable in the country of implementation of the Contract and the fundamental conventions of the International

13

Labour Organisation

(ILO) and international environmental treaties. Moreover,

we shall implement environmental and social risks mitigation measures when specified in the relevant environmental and social management plans or other similar documents provided by the PEA and, in any case, implement measures to prevent sexual exploitation and abuse and gender based violence.

7. In the case of being awarded a Contract, we, as well as all members of our Joint Venture partners and Subcontractors under the Contract will, (i) upon request, provide information relating to the Tender Process and the performance of the Contract and (ii) permit the PEA and KfW or an agent appointed by either of them, and in the case of financing by the European Union also to European institutions having competence under European Union law, to inspect the respective accounts, records and documents, to permit on-the-spot checks and to ensure access to sites and the respective project.

8. In the case of being awarded a Contract, we, as well as all our Joint Venture partners and Subcontractors under the Contract undertake to preserve above mentioned records and documents in accordance with applicable law, but in any case for at least six years from the date of fulfillment or termination of the Contract. Our financial transactions and financial statements shall be subject to auditing procedures in accordance with applicable law. Furthermore, we accept that our data (including personal data) generated in connection with the preparation and implementation of the Tender Process and the performance of the Contract are stored and processed according to the applicable law by the PEA and KfW.


Name:                        In the capacity of:         


14

Xxxx empowered to sign in the name and on behalf of   _             


Signature: Dated:




13 In case ILO conventions have not been fully ratified or implemented in the Employer’s country the Applicant/Bidder/Contractor shall, to the satisfaction of the Employer and KfW, propose and implement appropriate measures in the spirit of the said ILO conventions with respect to a) workers grievances on working conditions and terms of employment, b) child labour, c) forced labour, d) worker’s organisations and e) non-discrimination.

14 In the case of a JV, insert the name of the JV. The person who will sign the application, bid or proposal on behalf of the Applicant/Bidder shall attach a power of attorney from the Applicant/Bidder.


Procurement Plan

User's Guidance Notes for the Preparation of a Procurement Plan


Article 1.6.2 of the Guidelines requires the PEA to prepare a Procurement Plan which identifies for each Contract to be financed in whole or in part by KfW:

▪ Contract type (Consulting Services, Goods, Works, Plant or Non-Consulting Services) and content,

▪ estimated Contract amount and the source(s) of funds,


▪ envisaged Tender Procedure and Single- or Two Stage Selection,


▪ envisaged standardised Tender Documents,


▪ type of review required by KfW (full or simplified review),


▪ estimated ESHS level (basic, elevated, high risk) per Contract as provisional indication at the time of first establishment of the procurement plan

▪ estimated date of tender publication or, in the case of limited competition, date of inviting firms to submit proposals.

For serial Contracts with identical content and procedures one single Contract might be included and explained in the comment column. In the case of programmes for which no individual Contracts can be identified in advance, the Procurement Plan may include the envisaged Tender Procedures and possibly thresholds for different types and values of Contracts as far as possible.

The Procurement Plan shall be initially created at least for the first 18 months as of the date of the Funding Agreement (Version 1) and shall be updated thereafter when necessary, but at least on an annual basis. Updates, amendments or modifications of the Procurement Plan are subject to KfW’s renewed No-Objection.

Along with the Procurement Plan the PEA shall provide KfW with the respective rational or explanations in order to document compliance with the Guidelines (e.g. justification in the case of a LCB or a Direct Award).

The Procurement Plan is an annex to a separate agreement to the Funding Agreement or directly to the Funding Agreement, as applicable. An amendment to the Funding Agreement due to an update, amendment or modification of the Procurement Plan is necessary only, if they have significant implications on the Funding Agreement or imply significant increases of agreed budget items.

For the sake of clarity, KfW’s No-Objection to changes in the Procurement Plan does not imply acceptance by KfW of the financing of new Contracts or the increased cost of Contracts unless such financing has been agreed upon by KfW as part of the cost and financing schedule in the Funding Agreement.

The establishment of a Procurement Plan is generally not required for prefinanced Contracts as per Article 1.6.8, for indirect financing as per Article 1.6.9 and funding through financial intermediaries as per Article 5.2.

Guidelines for the Procurement of Consulting Services, Works, Plant, Goods and Non-Consulting Services in Financial Cooperation with Partner Countries


Appendix 2

Procurement Plan

Comments

(Version No.    , dated      )


Serial No.

Procurement

16

Type


Short Description of Contract Content


Estimated Contract

Amount17


Source of

Funds18

Tender

Procedure19


20

Stages

Tender

Documents21

Review by

KfW22

ESHS risk

level23


Estimated Tender Publication


24

1

502530

C

Implementation Consultant

1.000.000 EUR

100% KfW

ICB

2

KfW

F

B

1.1.2019



2

392015


C


ESHS Consultant


50.000 EUR

50% KfW

50% PEA


LCB


1


KfW


S


n/a


1.1.2019


3

280912

W

Access Road

1.000.000 EUR

100 % PEA

NBC

1

PEA

F

E

1.10.2019


4

n/a

W

2 Wind Turbines, 5MW each

10.000.000 EUR

100% KfW

ICB

2

KfW

F

NE

1.12.2019


…















Additional agreement(s) List of other procurement related general arrangements or exceptions, if any.



15 KfW’s Procurement No. for the respective Tender Process to be provided by KfW’s procurement manager; “n/a” if not yet available.

16 “C” for Consulting Services, “W” for Works, “G” for Goods,” P” for Plant and “NC” for Non-Consulting Services. Incl. Contracts contracted beforehand, if any.

17 To be completed in the currency of the underlying Funding Agreement with KfW.

18 Share (in %) of the Contract financed by KfW, through the PEA’s own funds and/or other financing institutions.

19 “ICB” for International Competitive Bidding, “NCB” for National Competitive Bidding, “LCB” for Limited Competitive Bidding , “Q” for Price Quotation and “DA” for Direct Award.

20 “1” for Single-Stage Selection or “2” for Two-Stage Selection

21 Institution whose standardised Tender Documents are used. It is recommended to use KfW's Standard Tender Documents.

22 “F” for full review or “S” for simplified review.

23 “B” for basic, “E” for elevated, “H” for high ESHS risk level or “n/a” if not applicable and “NE”, if an ESIA/ESMP is not yet available. The ESHS risk level of a specific Contract is not necessarily identical with the Environmental and Social risk category of the whole project/programme. The level at project appraisal may be indicative and finalised when preparing

the Tender Documents for the Contract. If available, the ESIA/ESMP should be consulted and KfW’s Standard Tender Documents for further guidance.

24 Contract related explanation / procedural arrangements (e.g. justification for direct award, One-/two-envelope, evaluation method, thresholds for Tender Procedures in programmes).


91

Appendix 3


Minimum Content of a Tender, PQ-Result, Contract Award and Cancellation Notice


Tender Notice

The PEA shall prepare a tender notice to be published as per Article 2.5.1 including at least the following information:

▪ Partner Country,

▪ name and address of the PEA,

▪ Application/Offer submission details (submission deadline, address, language, originals, copies, etc.),

▪ title of the project,

▪ title of the Contract/Lot being procured,

▪ KfW’s procurement number of the Contract being procured,

▪ type of notice (Tender Notice, PQ-Result Notice, Award Notice, or Cancellation Notice),

▪ brief description of the project, the context, time schedule and further information,

▪ brief description of the Contract content to be procured, and

▪ address where the complete Tender Documents can be obtained.


Prequalification-Result Notice

In the case of Two-Stage Selection, the PEA shall prepare a PQ-result notice to be published as per Article 2.5.7 including at least the following information:

▪ list with name and country of prequalified Applicants, and

▪ reference to initial tender notice (including corrigenda, addenda if any), e.g. electronic link to initial tender notice or copy of initial tender notice.


Award Notice

The PEA shall prepare an award notice as per Article 2.5.14 including at least the following information:

▪ name and country of successful Contractor,

▪ start and end date of the Contract,

▪ Contract amount, and

▪ reference to initial tender notice, e.g. electronic link to initial notice or copy of initial notice.


Cancellation Notice

The PEA shall prepare a cancellation notice as per Article 2.5.16 including at least the following information:

▪ information about cancellation of Tender Process, and

▪ reference to initial tender notice, e.g. electronic link to initial notice or copy of initial notice.


Addenda/Corrigenda to Initial Notices

Any addenda/corrigenda to an initial notice shall be published in due time and in the same medium as the initial notice with a reference to the initial notice.


Appendix 4


Evaluation Criteria for Procurement of Consulting Services

1. Pre-Qualification


To be qualified for a Consulting Services Contract under an ICB procedure Applicants shall demonstrate their qualification in terms of financial capacity, experience and resources in relation to the requirements of the tasks and risks.

The verification of the financial capacity of Applicants shall be the basis of audited income statements and/or balance sheets and take into account the annual turn-over and the profitability of at least the last three years. The annual turn-over should be three times the estimated annual payments received out of the Contract amount; the ratio might be reduced for short term assignments or increased for long-term assignments. Profitability may be demonstrated through a positive cash-flow (in average) and (indirectly) the availability of a credit line. Applicants which do not fulfil the requirements of the Request for Applications shall be rejected.

For verification of adequate experience and resources the following criteria and scoring system should be applied with appropriate project relevant modifications.


Qualification criteria

Scoring Range

1. Applicant’s Experience

40 - 60

1.1 Experience in implementing similar projects

Description of the key features, reference projects shall demonstrate in order to be considered similar to the assignment. If applicable separate sub-criteria for ESHS requirements should be added here.

25 - 35

1.2 Experience with working-conditions in developing and/or transition countries/in particular regions.

15 – 25

2. Applicant’s Capabilities

40 - 60

2.1 Qualitative assessment of the Applicant’s available Expertise

Assessment of the quality of the expertise, to which the Applicant has access to, possibly completed with external expertise for the execution of the assignment in relation to the project team profiles described in the prequalification request. If applicable separate sub- criteria for ESHS requirements should be added.

25 – 35

2.2 Quantitative assessment of the Applicant’s Human Resources Capacity

Assessment of the Applicants own human resources in relation to the required expertise as described in the prequalification document. If applicable separate sub-criteria for ESHS requirements should be added.

10 – 20

3. Is the Application concise and related to the project?

5

Total Prequalification Score

100


Appendix 4


It is strongly recommended that sub-criteria descriptions be made as detailed and specific as possible. No other sub-criteria are allowed during evaluation than the ones indicated in the prequalification document.

If the Consulting Services are dedicated to project design, tendering and implementation supervision services for Works or Plant Contracts with ESHS risks and no specialised ESHS consultant is engaged, candidates shall be required to demonstrate the ability and capacity to specify and design relevant mitigation and protective measures and to monitor its implementation on site in addition to the above-mentioned requirements. However, ESHS requirements shall be carefully and adequately designed to reflect the ESHS risks associated to the individual Contract under consideration.

In such cases a percentage between 10% and 25% of the qualification criteria 1.1, 2.1 and 2.2 shall be applied to such ESHS experience and capability of the Applicant. The qualification criteria and scheme above shall be adapted accordingly.

Only Applications scoring 70% or more of the total points will be considered as qualified for the Contract. However, if the number of prequalified Applicants exceeds a predefined number as specified in the RfA Applicants will be invited as per their ranking. The number of Applicants to be invited shall be at least five (5) but not more than eight (8). Should the number of prequalified Applicants be below the predefined number the Tender Process may continue with a reduced number of candidates, if i) the Tender Notice has been published widely and

ii) the prequalification criteria have not been too ambitious. Otherwise the Tender Process should be cancelled, followed by a new Tender Process more widely published and/or with amended qualification criteria.

For projects with significant ESHS risks during implementation the prequalification document may specify that Applications which do not meet the minimum ESHS score (usually 70% of the total of the ESHS sub-criteria) shall be rejected, independent from the total score.

2. Evaluation of Proposals


The technical evaluation shall be based on the following criteria and point system. No additional criteria or sub-criteria than those indicated in the RFP shall be used for the evaluation of the technical Proposals.



1.

Concept and methodology


35


1.1

Clarity and completeness of the tender

5



1.2

Critical analysis of the project objectives and the Terms of Reference (TOR)

10



1.3

Proposed concepts and methods [If applicable add separate sub-critera for ESHS requirements]

20



2.

Qualifications of proposed staff [If applicable add separate sub-criteria for ESHS requirements to the team or individual team members]


65


2.1

Team leader/project manager

30



2.2

Other Key staff to be employed on the project

30



2.3

Personnel in the home office who will monitor and control the team, and provide back-up services

5



Total Technical Score


100



Appendix 4


The sub-criteria and point system indicated above are indicative. It is strongly recommended that sub-criteria descriptions be made as detailed and specific as possible. Depending on the nature of the assignment the distribution of points may vary from the one indicated above between 35 to 65 points for the staff proposal.


In the case the project structure does not foresee the assignment of a dedicated ESHS Consultant during execution of Works/Plant Contracts by contractor(s) the implementation Consultant will be required to oversee that ESHS requirements are adequately addressed and adhered to during project implementation. In line with the ESHS requirements during the prequalification phase, the evaluation of the Consultant’s concept and the proposed team shall take into account ESHS aspects accordingly.

In such a case a percentage between 10% and 25% of the score for concept and methodology (1.3) and for the proposed team (2.) shall be dedicated to ESHS). The Consultant shall be required to demonstrate which of the team member(s) are responsible for such ESHS issues. The evaluation criteria and scheme above shall be adapted accordingly.

For projects with significant ESHS risks during implementation the RfP may specify that technical Proposals which do not meet the minimum ESHS score (usually 75% of the total of the ESHS sub-criteria) shall be rejected, independent from the Total Technical Score.

Upon conclusion of the technical and financial evaluation the technical and financial Proposals will be weighted as follows in order to determine the overall score and ranking of the Proposals. First, the weighted technical sore is calculated


PT = WT * T, with

PT = weighted technical score (points) of a technical Proposal,

T = technical score (points) as per technical evaluation, WT = weight of the technical Proposal (in percent)


following the calculation of the weighted financial score


PF = WF * Co/C, with

PF = financial score (points) of a financial Proposal,

C = evaluated price of the financial Proposal,

Co = lowest evaluated price of all financial Proposals.


and finally the overall score is calculated


P = PF + PT.


The weightings should generally be 80% for the technical Proposal and 20% for the financial Proposal.

Appendix 5

Minimum Content of Tender Documents


Request for Application


Requests for Application are to be used for Prequalification of Applicants in Tender Processes with Two-Stage Selection.

KfW provides SDOs for Prequalification for Consulting Services and for Works/Plant Contracts. If the PEA uses other Tender Documents for Prequalification, they shall not deviate in a substantive manner from the above mentioned documents and include the following minimum content:


(1) General information about the PEA issuing the tender, source of funds and entity conducting the Tender Process including contact details;


(2) description of the whole Prequalification process, including e.g. conditions of participation, format and list of documents to be submitted by Applicants, deadlines for clarification requests and Application submission, evaluation criteria and method;


(3) short description of the Contract content;


(4) application forms, which reflect the eligibility and evaluation criteria and


(5) KfW’s Declaration of Undertaking.


Request for Proposal/Invitation to Bid


Requests for Proposal/Invitations to Bid are to be used for selection of Contractors in Tender Processes with Two-Stage or Single-Stage Selection.


KfW provides SDOs for the procurement of Consulting Services, Goods, Works, Small Works and Plant (design, supply installation). If the PEA uses other Tender Documents for selection of Contractors, they shall not deviate in a substantive manner from the above mentioned respective documents and include the following minimum content:


(1) General information about the PEA issuing the tender, source of funds and entity conducting the Tender Process including contact details;


(2) description of the whole Offer process, including e.g. conditions of participation, format and list of documents to be submitted by Bidders, deadlines for clarification requests and Offer submission, evaluation criteria and method;


(3) (continued) eligibility criteria, (continued) qualification criteria and – in the case of Single- Stage Selection - evaluation method of the latter;


(4) detailed Terms of Reference/technical specifications, including e.g. context of the project and ESHS requirements, expected outcomes of the Contract, respective responsibilities of the contracting parties and duration of the Contract;

(5) draft Contract;


(6) Forms or requirements for the preparation of the technical and financial Offer, which reflecting the specifies requirements;

(7) KfW’s Declaration of Undertaking.


Appendix 6

Minimum Content of Minutes of Application/Offer Opening and Evaluation Reports

The PEA shall provide KfW with a report of the opening (minutes of Application/Offer opening) and of the evaluation of Applications (Prequalification evaluation report) and Offers (Proposal/Bid evaluation report) as defined in the Guidelines.

These reports contain in general the following information and shall be provided for No- Objection in the format as requested by KfW:


Minutes of Application/Offer Opening


(1) Names of persons in charge of Application/Offer opening (Application/Offer opening committee);


(2) Names of other participants (e.g. representatives of Applicants/Bidders);


(3) Date, time and venue of Offer opening;


(4) Statement on the status of the envelopes:


▪ timely or delayed delivery,

▪ number of Application/Offer originals/copies,


▪ envelope(s) sealed properly;


(5) Short description of opening procedure:

▪ Which envelope has been opened? Outer/inner envelope? Envelope containing qualification documents, technical Offer and/or financial Offer?

▪ Which envelopes remain closed?


▪ For financial Offer opening: price as per price sheet to be stated;


(6) Date of preparation of the report and signature of all members of the Application/Offer opening committee.

For paperless e-procurement Tender Processes equivalent evidence of Offer opening needs to be provided.


Prequalification and Offer Evaluation Reports


On completion of the Application/Offer evaluation KfW is furnished with a detailed report on the evaluation and comparison of the Applications/Offers and with a substantiated recommendation for the invitation of prequalified Applicants (RfP/ITB) or Award of Contract, as the case may be, that must be coordinated with any government agencies of the Partner Country whose involvement may be required.

(1) Introduction


▪ Short information on project and Contract content;


▪ Tender Procedure (e.g. ICB, NCB), Single- or Two-Stage Selection, One- or Two- Envelope Submission undertaken;


Appendix 6


▪ What/which stage/envelope is being evaluated in the present report (e.g. Prequalification evaluation, technical Offer evaluation, financial Offer evaluation, combined evaluation);

▪ Names of persons in charge of Application/Offer evaluation (members of Application/Offer evaluation committee);

▪ Start and end of Application/Offer submission period, including any extensions thereof with reasoning and proof of its publication;

▪ Date and medium of publication of tender notice and in the case of Two- Stage Selection PQ-result notice, or when and how took the invitation to interested/preselected Persons place? (evidence of publication to be attached as annex to the report in the case of an ICB and an NCB);


▪ In the case of a pre-bid meeting: date, time and venue; participants and minutes of discussion (minutes of meeting to be attached as annex to the report);

▪ Clarifications/addenda to Tender Documents during the Application/Offer submission period (any clarifications with Applicants/Bidders during the Application/Offer submission period and during the evaluation phase to be attached as annex to the report).

(2) Results of Preliminary Examination

▪ Names of all Applicants/Bidders (minutes of Application/Offer opening to be attached as annex to the report);

▪ If the Application/Offer fails preliminary acceptance, the reasons must be clearly explained (Since rejection at this stage puts the Application/Offer out of any further considerations, it should be ensured that the decision to reject is justifiable.);

▪ Applications/Offers which have been considered for further evaluation.

(3) Application/Offer Evaluation Process

▪ Basis for evaluation (e.g. KfW’s Guidelines, Tender Documents, Public Procurement Regulations);


▪ Results of evaluation (usually a summary is provided in the report and details are provided as annex to the report)

⮚ pass/fail criteria: have they been met or not?


⮚ scoring criteria: every score needs to be justified in accordance with the evaluation criteria and matrix.

(4) Conclusion

▪ List of Applicants proposed to be invited to submit an Offer (Prequalification evaluation report), or which Bidders have submitted a technically responsive Offer and can be considered for financial evaluation (technical BER), or which Bidders have submitted a responsive financial offer (financial BER);


▪ List of identified errors, omissions, deficiencies or other subject matter for each Offer substantially compliant with the requirements of the RfP/ITB and which will be subject to clarifications before Award of Contract;


▪ Which Applicants/Bidders are rejected and for what reason;

▪ Final ranking (final/financial BER), which Offer is first ranked/has the lowest evaluated price and thus is proposed for Award of Contract;

Appendix 6


▪ Signature of all members of the Application/Offer evaluation committee.

In order to assess the provided reports KfW reserves the right to ask the PEA for further documents, e.g. complete Offers or extracts thereof.

Document Metadata

Filed: December 30th, 2019