This document provides an overview of the procurement process for the Tanahu Hydropower Limited (THL) project in Nepal. It discusses the project overview, applicable guidelines, procurement planning, cycle and types. It notes that THL will implement the project, with oversight from the Asian Development Bank and Nepal Electricity Authority. It also outlines considerations for procurement under bank-financed projects, including transparency and preventing corrupt practices. Thresholds for prior review by the bank are mentioned. The document concludes with sections on Bill of Quantities and rate analysis.

1. PROCUREMENT Process, BoQ and Rate Analysis
for
Tanahu Hydropower Limited (140 MW)
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2. Content
1. PROJECT OVERVIEW
2. PROCUREMENT PLANNING
3. PROCUREMENT CYCLE-GOODS &WORKS
4. CONSULTANT SELECTION CYCLE
5. THL STRUCTURE
6. STEP STATUS
7. APPLICABLE GUIDELINES OF GON (NCB OR ICB)
8. CONSIDERATIONS THAT GUIDE PROCUREMENT IN
BANK FINANCED PROJECTS
9. TYPES OF PROCUREMENT
10. PRIOR REVIEW THRESHOLDS
11. MISPROCUREMENT
12. BOQ
13. RATE ANALYSIS
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3. Project Overview
 Tanahu Hydropower will be a medium-sized hydropower plant (140 MW)
with water storage to make power supply available year-round and meet
the country’s peak demand in particular for the dry season.
 The project will also support transmission facilities, some rural
electrification, reforms and the restructuring of the national utility –
Nepal Electricity Agency (NEA).
 Asian Development Bank (ADB) will be the main governing body and
investor.
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4. PROCUREMENT
PLANNING
Prior Agreed Procurement Plan to be the basis for any
procurement under the project.
FACTORS :
What? (Contract packages)
What Price ?($)
How? (Strategy)
Who? (Organization)
When? (Scheduling & Monitoring)
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5. PROCUREMENT CYCLE-Goods &Works
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Steps to follow
Contract
performance
Prepare Bidding
document
Contract award
BID OPENING
Issue Bidding
Documents
Bid evaluation and
selection
Pre Bid conference (if
required)
Advertising in
National press
Bids Received

6. General
Procurement
Notice
Contract
Performance
Adv. for
EOI with
TOR
Contract
Award
Financial
Evaluation
Short-listing
Tech.
Proposal
Opening
Issue of RFP
Documents
Tech.
Evaluation
Pre-proposal
Conference
Consultant Selection Cycle
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7. THL
Structure
This project was approved by NEA on Aug, 2012 with closing date of Jun,
2024. The Project is being implemented by Tanahu Hydropower Limited.
The Project Agreement require that the THL engage a Procurement
consultant to carry out procurement review .The selection process has been
been initiated and we expect THL will be the consultant onboard.
To conduct regular project reviews and facilitate the
implementation of the project is by ADB and rural electrification and
transmission line done by NEA.
A number of non-compliances have been identified in the PPR.
All the THL team must note that these possible noncompliance can lead
to declaration of mis-procurement.
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8. STEP STATUS
 Number of Procurement plans in STEP :
 Completed : $ 150 Million
 Signed : $150 Million
 Pending for Initiation : $0 Million
 Under Implementation: $0 Million
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9. THL
Applicable Guidelines
of GoN (NCB or ICB)
 – “Procurement Guidelines” means the “Guidelines:
Procurement of Goods, Works and consulting Services
under ADB Loans and THL Credits and Grants by "The
Public Procurement Act, 2007" (PPA),"The Public
Procurement Regulations, 2007" (PPR), and/or ―The NEA
Financial Administration Regulations, 2068”.
 -Consultant Guidelines” means the “Guidelines: Selection
and Employment of Consultants under ADB Loans and
THL Credits and Grants by "The Public Procurement Act,
2007" (PPA),"The Public Procurement Regulations, 2007"
(PPR), and/or ―The NEA Financial Administration
Regulations, 2068”.
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10. CONSIDERATIONS
THAT GUIDE
PROCUREMENT IN
BANK FINANCED
PROJECTS
PROCUREMENT PRINCIPLE :
 Need for economy and efficiency in the execution of the project.(Encourage open competition).
 All eligible bidders to get equal opportunity to compete.
 Make the procurement process transparent.
BANK GUIDELINE REQUIRES THAT HIGHEST STANDARD OF ETHICS ARE OBSERVED DURING THE
PROCUREMENT AND EXECUTION .
F&C DEFINITIONS:
 “CORRUPT PRACTICE” – OFFERING, GIVING, RECEIVING, SOLICITING ANYTHING OF VALUE TO INFLUENCE A
PUBLIC OFFICIAL IN THE PROCUREMENT PROCESS OR CONTRACT EXECUTION.
 “FRAUDULENT PRACTICE” – MISREPRESENTATION OR OMISSION OF FACTS IN ORDER TO INFLUENCE A
PROCUREMENT PROCESS OR CONTRACT EXECUTION.
 “COLLUSIVE PRACTICE” – ARRANGEMENT BETWEEN BIDDERS IN ORDER TO ESTABLISH BID PRICES AT
ARTIFICIAL NON-COMPETITIVE LEVELS.
 “COERCIVE PRACTICE” – HARMING OR THREATENING TO HARM PERSONS TO INFLUENCE THEIR
PARTICIPATION IN A PROCUREMENT PROCESS OR AFFECT THE EXECUTION OF A CONTRACT
 ‘OBSTRUCTIVE PRACTICE ‘-DELIBERATELY DESTROYING FALSIFYING ALTERING OR CONCEALING OF
EVIDENCEMATERIAL TO THE INVESTIGATION OR MAKING FALSE STATEMEMT TO INVESTIGATORS TO
MATERIALLY IMPEDE BANK INVESTIGATION INTO CORRUPT,FRAUDULENT,COERCIVE,COLLUSIVE PRACTICE
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0
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11. TYPES OF PROCUREMENT
PROCUREMENT
OF
CONSULTANT
SERVICES
“CONSULTANT SERVICES” INCLUDE SERVICES OF AN INTELLECTUAL AND
ADVISORY NATURE (SUCH AS POLICY ADVISE, INSTITUTIONAL REFORMS ADVICE,
SOCIAL AND ENVIRONMENTAL STUDIES, TECHNICAL ASSISTANCE–ENGINEERING
SERVICES AND CONSTRUCTION SUPERVISION, FINANCIAL SERVICES
PROCUREMENT
OF GOODS
“GOODS” INCLUDE: COMMODITIES, RAW MATERIAL, MACHINERY, EQUIPMENT
AND INDUSTRIAL PLANT.
PROCUREMENT
OF WORKS
“WORKS” INCLUDE SERVICES WHICH ARE BID AND CONTRACTED ON THE BASIS
OF PERFORMANCE OF A MEASURABLE PHYSICAL OUTPUT (SUCH AS
CONSTRUCTION OF WORKS, MANUFACTURE OF GOODS, OPERATION AND
MAINTENANCE OF FACILITIES OR PLANTS, DRILLING, MAPPING A.S.O.)
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12. Prior Review
Thresholds
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13. Prior Review
Thresholds
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14. MISPROCUREMENT
THE BANK DOES NOT FINANCE
FOR CONSULTANT SERVICES, GOODS AND
WORKS WHICH HAVE NOT BEEN PROCURED
ACCORDANCE WITH AGREED PROCEDURES
THE LOAN AGREEMENT
IN CASE OF MISPROCUREMENT, IT IS THE
BANK POLICY TO CANCEL THAT PORTION
THE LOAN ALLOCATED TO SERVICES,
OR WORKS THAT HAVE BEEN
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15. 15
BOQ of Mechanical Components of THL

16. 16
TOTAL

17. THANK
YOU
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