Procurement

Results-based lending (RBL) is well suited if it is embedded in a wider government-owned and led program. It can be an effective modality for achieving both physical outputs and nonphysical goals. It can also make changes in national policies that go beyond the project’s physical scope. The climate risk assessments, procurement processes, and beneficiary selection criteria used in this program were also applied in non-ADB financed provinces. The instructions issued and policies adopted by the government were “national”in nature and impact.

Careful selection of competent experts and close consultant monitoring and coordination is essential to ensure the quality of TA outputs. As the two consultants engaged by this TA needed to work on separate topics to deliver one report, close monitoring and coordination by the ADB team proved critical to the timely attainment of consultant deliverables. Regular meetings were conducted to oversee progress, give guidance, avoid preventive abortive work, and deliver quality outputs.

Using individual consultants and resource persons provides flexibility in contract implementation. A summary recording of pertinent contract data must be kept updated to support efficient consultant management.

To benefit from procurement advance action, the process should begin as early as eight months before loan effectiveness.

The availability of additional resources for the preparation of one or two procurement-ready civil works subprojects before loan effectiveness could support a smooth project startup.

Detailed market analysis through strategic procurement planning and accurate cost estimates could prevent unexpectedly low bids, leading to significant project savings. Under this project, it is noted that low bids did not negatively affect the quality of construction.

Establishing well-staffed and operational project management units (PMUs) and project implementation units (PIUs) as early as possible is essential for effective implementation. Timely recruitment and mobilization of project implementation consultants will also ensure that technical resources are in place to support the PMUs and PIUs. Delays in consultant recruitment and high turnover in specialized areas need to immediately addresses as these could adversely impact project activities.

Consulting services for design, monitoring, supervision, and overall project management are important for timely procurement and implementation, and particularly for the complex DBO contracting modality, considering that government agencies in Bhutan are increasingly familiar with and prefer DBO

Performing an adequate level of due diligence and risk assessments at the early stage of project preparation increases the quality of project design and readiness. For example, preparatory work for procurement planning and administration of abnormally low bids (e.g., prequalification of bidders) supports and better streamlines the procurement process and avoids substantial changes in a project design and scope.

Resource constraints can impede the participation of smaller firms in ADB procurement as well as hinderCapacity development of counterpart agencies. Smaller firms struggled to respond appropriately in some bidding processes, which resulted in their being considered ineligible to participate. The project implementation unit experienced resource constraints, which hindered sustainedCapacity development throughout the project and the participation of outer islands officials in the training activities.