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    Procurement Under Japanese JICA ODA Loans

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    RN Shaown
    The document provides guidelines for procurement under Japanese ODA loans. It discusses two key chapters on consultant guidelines and procurement guidelines. It outlines JICA's review process, requirements to avoid corrupt practices, and guidelines on consultant selection, bidding methods, prequalification, contract types, evaluation and awarding of bids. The guidelines aim to ensure transparency and fairness in procurement financed by Japanese ODA loans.

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    Procurement Under Japanese JICA ODA Loans

    Uploaded by

    RN Shaown
    13 views28 pages
    The document provides guidelines for procurement under Japanese ODA loans. It discusses two key chapters on consultant guidelines and procurement guidelines. It outlines JICA's review process, requirements to avoid corrupt practices, and guidelines on consultant selection, bidding methods, prequalification, contract types, evaluation and awarding of bids. The guidelines aim to ensure transparency and fairness in procurement financed by Japanese ODA loans.

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    The document provides guidelines for procurement under Japanese ODA loans. It discusses two key chapters on consultant guidelines and procurement guidelines. It outlines JICA's review process, requirements to avoid corrupt practices, and guidelines on consultant selection, bidding methods, prequalification, contract types, evaluation and awarding of bids. The guidelines aim to ensure transparency and fairness in procurement financed by Japanese ODA loans.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views28 pages

    Procurement Under Japanese JICA ODA Loans

    Uploaded by

    RN Shaown
    The document provides guidelines for procurement under Japanese ODA loans. It discusses two key chapters on consultant guidelines and procurement guidelines. It outlines JICA's review process, requirements to avoid corrupt practices, and guidelines on consultant selection, bidding methods, prequalification, contract types, evaluation and awarding of bids. The guidelines aim to ensure transparency and fairness in procurement financed by Japanese ODA loans.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 28

    Guidelines for Procurement

    under Japanese ODA Loans

    ENGR. MD. ENAMUL HUQUE, MCIPS


    Deputy Project Director (Deputy Secretary),
    MRT Project (Line-5): Northern Route
    MBA (Marketing), DU;
    MPSM, BRAC University;
    B. Sc. (Civil Eng.), BUET.

    March 2024
    Introduction
     HANDBOOK for Procurement under Japanese ODA Loans
    2012:
    • Version 1.0 published on April 2012
    • Version 1.1 published on April 2013
    • Latest revision on October, 2023
     Two chapters:
    • Chapter 1: Guidelines for the Employment of Consultants
    (Known as Consultant Guidelines)
    • Chapter 2: Guidelines for Procurement
    (Known as Procurement Guidelines)

     Applicable for all the projects financed by ODA Loans from


    Japan International Cooperation Agency (JICA)
     ODA = Official development assistance
    Slide 2

    H1 added
    HP, 12/11/2018
    Section 1.05 JICA’s Review
    JICA may review selection/procurement procedures, documents
    and decisions at different states:
    • PQ document / REOI document
    • PQ evaluation (prequalification) / EOI evaluation (shortlisting)
    • Tender document / RFP document
    • Technical evaluation report
    • Financial evaluation and draft contract
    • Corrigendum / Addendum
    • Contract variation
    • Cancelling all tenders
    Section 1.06 Corrupt or Fraudulent Practices

     The bidders, Contractors, Consultants, Borrowers shall


    observe the highest standard of ethics during the
    procurement process and execution of contracts.
     JICA’s own debarment list
     Debarment by the Multilateral Development Banks
    (MDBs) [max. 3 years]
    Section 1.07 Conflict of Interest
    Contractor/consultant shall not have conflict of interest
    A consultant that has been engaged to provide goods for a
    project shall be disqualified from providing consulting services
    A consultant hired to provide consulting services, shall be
    disqualified from subsequently providing goods
    A firm that has a close business relationship with the
    Borrower’s professional personnel shall be disqualified
    “One Bid Per Bidder” principle
    “One Bid Per Bidder” principle
    Section 2.02 Responsibilities of Consultants
    Act as a faithful adviser to the Borrower
    In the case of a difference of opinion between the Borrower
    and the Consultant on any important matters, the consultant
    shall submit a written report to the Borrower with a copy to
    JICA.
    The Borrower shall forward the report to JICA with its
    JICA will study it and decide.
    Act as “the Engineer” as defined in the FIDIC contract
    red/pink/yellow book.
    Consultant Selection Procedures
    (a) Preparation of a Short List of Consultants;
    (b) Preparation of the Request for Proposals (RFP);
    (c) Invitation to submit proposals;
    (d) Evaluation of proposals; and
    (e) Negotiation and conclusion of a contract.
    Consultant Selection Methods
    Quality- and Cost-Based Selection (QCBS)
    Quality-Based Selection (QBS)
    For complex or highly specialized assignments
    Single-source selection (SSS) shall be used only in
    exceptional cases
    Bidding Methods (Goods/works/plants)
    International Competitive Bidding (ICB) [Section 1.02 ]
    Preferred by JICA
    Other methods:
    Limited International Bidding (LIB) - direct invitation
    without open advertisement
    International Shopping - comparing price quotations
    obtained from several (usually at least three) foreign
    and/or local suppliers
    Direct Contracting
    Local Competitive Bidding (LCB) - in accordance with
    the procurement procedures used in the Borrower’s country
    Section 2.01 Types of Contract
    Admeasurement Contract (unit price based)
    Lump sum price,
    Cost-reimbursable, or
    a combination of the above
    ICB
    Single-Stage Two-Envelope Bidding and
    Two-Stage Bidding
    With or without pre-qualification
    Section 3.02 Prequalification of Bidders
    Required in advance of bidding for large or complex contracts
    Based on –
    a) past performance,
    (b) capabilities of construction or production, and
    (c) financial position
    Evaluation based on pass/fail criteria
    All bidders who pass all the criteria will be pre-qualified.

    A change in the members of a joint venture after


    prequalification is acceptable
    Bidding Documents
    Standard Bidding Documents (SBDs) of the latest version
    issued by JICA shall be used
    SBDs:
    Consultants
    Pre-qualification
    Works
    Design Build
    Plant Design, Supply and Installation
    Goods
    Small Works
    Bidding
    Section 4.03 Bid Securities:
    around 2% of the estimated cost
    Section 4.04 Conditions of Contract
    FIDIC model forms of contract adopted for MDBs
    (Red/Yellow/Pink book)
    Section 4.07 Use of Brand Names:
    Reference to brand names, catalogue numbers, or similar
    classification shall be avoided in specifications.
    Section 4.09 Currency of Bids
    Yen and other international currencies
    Any portion which will be spent in the Borrower’s country may
    be stated in local currency
    Section 4.10 Currency Conversion for Bid Comparison:
    all bid prices shall be converted to a single currency as
    mentioned in the RFP for comparison
    Section 4.12 Price Adjustment Clauses
    Generally price adjustment provisions are included in the
    contracts
    the base cost indices or prices should be those bases
    prevailing on the day 28 days prior to the closing date for the
    submission of bids.
    according to the adjustment formulae indicated in the bidding
    documents
    Section 4.13 Advance Payment
    Advance payment clauses are generally included in contracts
    10 and 15% of the contract price
    Against bank guarantee
    Section 4.14 Performance Securities and
    Retention Money

    Performance security:
    a performance security is provided in the form of bank
    guarantees or a performance bond
    between 5 and 15% of the contract price
    Retention money:
    about 5 to 10% of the contract price
    should be held until final acceptance, which is normally
    about one year after completion of the work.
    Section 4.16 Liquidated Damage
    and Bonus Clauses

    Liquidated damage:
    for delays in completion or delivery
    0.5% of contract price per 1-week delay and
    the upper limit should be about 5 to 10%.
    Bonus:
    Provision may also be made for a bonus to be paid to
    Contractors for completion of work contracts ahead of time
    specified in the contract
    Section 4.18 Settlement of Disputes

    International commercial arbitration administrated by an


    international arbitration institution in a neutral venue
    “International arbitration institution” includes the International
    Chamber of Commerce and The Japan Commercial Arbitration
    Association
    According to FIDIC provisions
    A Dispute Board (DB) is jointly engaged (1 or 3 member)
    Section 4.19 Applicable Laws

    The contract shall mention which laws shall govern (normally


    borrower’s country law)
    he contents of the Exchange of Notes and the provisions of
    the Loan Agreement will be taken into consideration (normally
    these will overrule country’s law)
    Section 5.06 Evaluation and Comparison of Bids

    Provisions for price adjustment included in a bid shall not be


    taken into consideration.
    Any procedure under which bids above or below a
    predetermined value are automatically disqualified is not
    permitted.
    The use of the Merit Point System, according to which price
    and technical factors are given relative weights, and the bid
    that obtains the highest point total is selected, is not accepted
    in principle.
    increase of performance security may be requested to a
    successful bidder if there are appropriate reasons (e.g.
    seriously unbalanced bid).
    Section 5.08: Evaluation Report shall be prepared by the
    Borrower or its consultants.
    Section 5.10 Rejection of Bids

    Bidding documents usually provide that the Borrower may


    reject all bids.
    However, JICA’s concurrence is required
    All bids shall not be rejected solely for the purpose of
    obtaining lower prices in the new bids
    Where exceptional circumstances justify it, the Borrower may,
    as an alternative to rebidding, negotiate with the lowest
    evaluated bidder
    Section 5.11 Notification to Unsuccessful
    Bidders and Debriefing
    (1) Upon furnishing by the successful bidder of a performance
    security, the Borrower shall promptly notify the other bidders
    that their bids have been unsuccessful.
    (2) If any bidder who submitted a bid wishes to ascertain the
    reasons why its bid was not selected, such bidder may request
    an explanation from the Borrower. The Borrower shall promptly
    provide an explanation as to why its bid was not selected.
    Documents Constituting a Contract

    An example of documents constituting a contract is:


    ・Contract Agreement
    ・Letter of Acceptance
    ・Letter of Bid and Appendix to Bid
    ・Conditions of Contract
    ・Specifications
    ・Drawings
    ・Bill of Quantities (BoQ)

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