1168 Assurance Report Final Buahit Dilyibza Road Project

Construction Sector Transparency Initiative – Ethiopia (CoST – Ethiopia)
Assurance Report on Disclosed Project and Contract

Information of Debark – Buahit – Dilyibza Design and Build
Road Project, Lot II: Buahit – Dilyibza Road Project
May 2016
Addis Ababa, Ethiopia
Buahit – Dilyibza Design and Build Road Project – Final Report
Table of Contents
1. Executive Summary ............................................................................................................................. 6

1.1 Brief Descriptions of Project &Contracts included on the Report ........................................................ 6
1.2 Summary of Findings .................................................................................................................... 6
1.2.1 Handling of Documents& Records........................................................................................... 7
1.2.1.1 Difficulty to Access Relevant Documents .......................................................................... 7
1.2.2 Fairness of Procurement Rules on Participation ....................................................................... 8
1.2.2.1 Submission Problem of Bid Offer ..................................................................................... 8
1.2.2.2 Efficiency of Procurement Process................................................................................... 8
1.2.3 Issues related to Contract Scope ............................................................................................ 9
1.2.3.1 Allocation of Contract Duration ........................................................................................ 9
1.2.4 Compliance with Contract Requirements ............................................................................... 10
1.2.4.1 Replacement of new Firm on the Supervision Service Contract: ....................................... 10
1.2.4.2 Insurance against the Risks and for the Coverages: ........................................................ 10
2. Introduction ....................................................................................................................................... 12
2.1 Main Objectives of the Assignment ............................................................................................... 12
2.2 Challenges of the Assurance Process........................................................................................... 12
2.2.1 Lists of Documents Collected Lately ...................................................................................... 12
2.2.2 Lists of Unavailable Documents ............................................................................................ 13
3. Disclosure of Project Information......................................................................................................... 14
3.1 Project Overview......................................................................................................................... 14
3.2 Scope of the Project .................................................................................................................... 14
3.3 Socio Economic Benefits of the Project ......................................................................................... 14
3.3.1 Socio-Economic Benefits during Operation ............................................................................ 15
3.3.2 Positive Impacts on Tourism ................................................................................................. 15
3.3.3 Creation of Job Opportunities during Construction .................................................................. 15
3.4 Undesired Impacts of the Project .................................................................................................. 15
3.5 Source of Funding and Project Cost ............................................................................................. 16
3.6 Project Duration .......................................................................................................................... 16
4. General Overviews on Procurement & Contract Information .................................................................. 17
5. Disclosure of the Design & Supervision Service Procurement Information .............................................. 18
5.1 Disclosure of Procurement Information ......................................................................................... 18
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5.1.1 Overview of the Procurement Process ................................................................................... 18

5.1.1 Verification of the Disclosed Procurement Information............................................................. 19
5.1.1.1 Completeness of the Disclosed Procurement Information ................................................ 19
5.1.1.2 Accuracy of the Disclosed Procurement Information ........................................................ 20
5.1.2 Analysis of the Disclosed Procurement Information ................................................................ 20
6. Disclosure of the 1st Construction Supervision Procurement & Contract Information ................................ 21
6.2 Disclosure of Contract Information ................................................................................................ 24
6.2.1 Overview of the Contract ...................................................................................................... 24
6.2.2 Verification of the Disclosed Contract Information ................................................................... 24
6.2.2.1 Completeness of the Disclosed Contract Information ....................................................... 25
6.2.2.2 Accuracy of the Disclosed Contract Information .............................................................. 25
7. Disclosure of the 2nd Construction Supervision Procurement & Contract Information ................................ 26
7.2.3 Analysis of the Disclosed Contract Information ....................................................................... 28
8. Disclosure of Design & BuildProcurement & Contract Information .......................................................... 30
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8.1.3.1 Efficiency of the Procurement Process (Timeliness) ........................................................ 32
8.1.3.2 Fairness of the Procurement Rules on Participation ........................................................ 32
8.2.3 Analysis of the Disclosed Contract Information ....................................................................... 35
8.2.3.1 Compliance with Contractual Requirements.................................................................... 35
8.2.3.2 Changes to Contracts ................................................................................................... 36
9. Recommendation on the Key Findings and Further Review ................................................................... 37
10. Project Information ........................................................................................................................ 38
11. Procurement Information for Design & Supervision Consulting Service .................................. 45
12. Appendix 1: AP’s Response on PE’s Comment to the Report ............................................................ 47
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List of Tables
Table 4.1 List of Procurement Processes undertaken and Contracts Made
Table 5.1 List of firms who were invited to submit proposals
Table 5.2 List of firms who submitted proposals
Table 5.3 List of unavailable documents and required information
Table 5.4 Lists of Secondary Information Disclosed and their Sources
Table 6.2 List of firms who submitted proposals
Table 8.1 List of Applicants who have collected the Bidding Documents
Table 8.2 List of Applicants who submitted their applications for post qualifications and financial Bids
Table 8.3 List of Post-Qualified Bidders
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List of Acronyms / Abbreviations

AP Assurance Professional
CAC Contract Award Committee
CoST Construction Sector Transparency Initiative
DB Design and Build
DG Director General (of ERA)
DNA Document not Available
EIA Environmental Impact Assessment
EOI Expression of Interest
EOT Extension of Time
ERA Ethiopian Road Authority
ETB Ethiopian Birr
FDRE Federal Democratic Republic of Ethiopia
ICB International Competitive Bidding
IPC Interim Payment Certificate
KM Kilo Meter
LCBS Least Cost Based System
MPI Material Project Information
NA Not Applicable
NCB National Competitive Bidding
NMSG-EC National Multi Stakeholder Group – Executive Committee
No Number
PE Procuring Entity
QCBS Quality Cost Based System
RoW Right of Way
RSDP Road Sector Development Program
TAC Technical Analysis Committee
VO Variation Order
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1. Executive Summary
This report is prepared by the AP in accordance with the Contract Agreement made with CoST – Ethiopia which,
as part of its program, aims to address on increasing transparency and accountability in the construction
sector.CoST is an international multi-stakeholder program and is based on the belief that ‘increased transparency
through disclosure of project information’ will lead to greater accountability of public officials and eventually to
more efficient and effective construction of public infrastructure.
The report represents only for Lot II: Buahit – Dilyibza Road Projectwhich is one part from the total projectof
Debark – Buahit – Dilyibza Design and Build Road Project. The total Project of the Road alignment has been
divided into two lots (Lot I and Lot II) and the PE is undertaking the Procurement and Contract implementations
independently. Therefore only one Lot (Lot II project), as Agreedwith CoST – Ethiopia, is considered in this report.
On the report,Disclosure &Assurance Process has been carried out in detail for the respective project in
accordance with the available information collected from PE.It includes disclosure of Procurement, Contract &
Project Information, examining Completeness and Accuracy of the disclosed information, conducting detail
analysis and identifying causes of Concern for the Project under review. The analysis concentrates on the
evaluation of PE’s performance on Procurement and Contract implementations in all stages with respect to the
requirements set out including applicable lawsand provisions.
1.1 Brief Descriptions of Project &Contracts included on the Report

Theproject under reviewis located in Amhara National Regional State in North Gonder Zone particularly in
Debark, Janamora and Beyeda Woredas.
To realize the relevant project, the PE has entered into three Contracts, two for Supervision and one for
Construction Works. The reason for the formation of additional Supervision Service Contract Agreement was due
to the expiry of the contract duration of the first Supervision Contract. it has been seen that no Contract
Agreement were formed for Design servicedue to the reasons concluded & made option by the PE to Contract
the Construction Works based on Design and Construct.
Currently the Design &Construction Works are ongoing by SATCON Construction PLC and supervised by
Transport Construction Design Share Company. Formerly, the Design &Construction Works were supervised by
DANA and Associates plc Engineering Consultants in JV with IDCON infrastructure development Consultants plc.
1.2 Summary of Findings

The Disclosure and Assurance Process for the project under review is carried out for the information collected
from PE during the preparation of the report. The disclosed lists of information are reviewed and analyzed to
assure the PE’s performance with respect to the requirements set out at each stage of Procurement & Contract
Implementation. Going through the details however some important issues are observed key findings are outlined
to the concerns for the PE to look forward.
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1.2.1 Handling of Documents& Records

1.2.1.1 Difficulty to Access Relevant Documents
The PE’s effort and cooperation on the provision documents is appreciated. Most of relevant document have
been provided by the PE for the preparation of this report. Alongside with PE’s effort however the Disclosure and
Assurance Process forthe following issuescouldn’t be analyzed and included in this reportdue to some
inconveniency on acquiring the respective documents.
The PE’s performance on the implementation of Contracts under the Project in compliance with the
intendedProject Plan,
The PE’s performance on theassessment &evaluation procedures of EOI fororiginally cancelled Design
and Supervision Services bid,
The PE’s performance on the implementation of Contracts for Supervision & Construction Works after the
period of Dec., 2014.
It has been observed problems from PE’s side on the proper maintenance and smooth access of documents and
records of active projects. The maintenance of all information in relation to Project Plan history (Scope, Budget,
intended start & Completion date, etc.,) for long period of time might not be properly exercised by the PE
nevertheless its importance. Itmay incorporate two or more Contracts under the project and shall be maintained
properly starting from project appraisal until finalizing and close out of scope of the Project Plan. It is necessary
as it is the basis for the PE to look for further improvementand design advance system by assessing performance
limitations.
It is our concern to the PE on the management of bulky documents on maintaining and for smooth access as
requiredand also in compliance with article 32 of the PPA Directive.It may not an easy task on maintaining the
records and documents of projects for long period of time as the PE is performing huge number of projects within
a year. However attention has to be given to conduct the necessary study on designing and implementing quality
management systemon maintaining and for smooth access to the requiredrecords and documents.
Alongside with the maintenance of documents it has been seen on delay of timely preparation of reports for
construction works. As per the PE’s explanation, the problem on the provision of latest Progress Reports for
Construction Works was due to the expiry of the existing Consulting Firm Contract and replacementof new
Consulting Firm in order to continue andtakeover the supervision services.Such situations give rise to an effect on
the preparation and provision of reports timelyby the new Consulting Firm. It is the PE’s attention to handle for the
smooth continuation of the supervision service.
With respect to the issue on the problem of timely preparation of reports for construction works, the AP has
described the points based on the verbal information collectedfrom PE (District Office) during report preparation.
However, in contrary to AP’s comment, the PE’s addresses the following point:
Thetransition of the Supervision from the previous Consultant to the new Consultant was made in systematic
manner such that no gap of information happens. However, the concern is appreciated.
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1.2.2 Fairness of Procurement Rules on Participation

1.2.2.1 Submission Problem of Bid Offer
It has been observed problems on submission of Bid Offers both on Supervision Services and Construction
Works Bids.
 Out of six (6) prospective shortlisted Biddersfor Design and Supervision Services, only two (2) of them have
submitted their qualification applications and financial offers,
 Out of six (6) prospective shortlisted Biddersfor 1stSupervision Services, only two (3) of them have submitted
their qualification applications and financial offers,
 Out of fifteen (15) prospective bidders who bought the tender documentsfor Construction Works, only three
(3) of them have submitted their qualification applications and financial offers.
Implications:
Competition would be low which could have a possibility to make the Contract price higher.
The existence of repetitiveness on submission problems of Bid Offer by the Bidders within one project
implementation shall be drawn by the PE for designing solutions to the problems.
According to PE’s explanation, consultants that couldn’t submit their proposals is due to their own
discretion; whereas, in ERA’s letter of invitation to submit proposal the consultants were requested to
confirm whether they are going to submit their proposal for the project or not.
Moreover the PE has forwarded the following explanationto their measures undertaken on resolving the issue:
As part of modernization endeavor ERA (the PE) is currently requesting reasons, filing and taking necessary
actions on bids for which several prospective bidders withdraw after purchasing bids, to make the necessary
consideration on the tender documents, as appropriate. Moreover, ERA is currently indicating the major
qualification criteria of projects on the respective NOTICE OF INVITATION FOR BIDS so as to enable potential
bidders to foresee their capacity to participate in the bids and/or to execute the project, which reduces cot of
bidding by bidders, to reduce or avoids similar withdrawals, etc.
Even if we couldn’t get the outcome of the assessment, the start of the PE on resolving the issue is appreciated.
Alongside with PE’s consideration, it is our attention to look forward in advanceon the following points;
 To study the negative impact on the number of invited bidders to the issue and consider on increasing the
number of Consulting Firms to participate on the Design & Supervision Service Bids,
 To review the requirements of Bid Documents for Construction Works and also for Design and Supervision
Services,
 To conduct profound studies on the submission problems of Bid Offer.
1.2.2.2 Efficiency of Procurement Process

It has observed that theactual process of procurement for the 1stSupervision Service Bid has taken for more than
10 months from the expected Bid Proposal validity period.
Closing date of Bid submission = February 25, 2010 (25/02/2010),
Evaluation report completion date = 08/11/2010,
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Signing date of Contract = April 5, 2011 (05/04/2011),

Actual period to finalize the evaluationprocess of the Procurement (from 25/02/2010 to 08/11/2010) = 10
months and 13 days,
Actual period until signing of Contract (from 25/02/2010 to 05/04/2011) = 13 months and 10 days,
Expected completion of Procurement process = 3 months
Difference = 10 months and 10 days.
It is understood that the formation of Contract Agreement with the Supervision Firms will go along with the
finalization of procurement process formation of Contract for Construction Works. Such case could have direct
effect on making delay on making Contract for Supervision Services within the Intended Time. However we draw
our attention to the PE to organize all the necessary resources and design efficient procurement plans in
consideration with the completion of the two procurement processes at the same time.
1.2.3 Issues related to Contract Scope

1.2.3.1 Allocation of Contract Duration
Beyond the completion date of the Construction Works Contract, an extra Duration, for about 18 Months, has
been entered into Contract Agreement between newly Supervision service Firmand the PE.
The PE has entered into Contract Agreement for the 2nd time with newConsulting Firm on December 15, 2014 for
the Contract Duration of 24 Monthsin order to continue the Supervision Service for the Construction Works.
As per the agreed Duration of the service, the completion date of the Contract will be after December 15, 2016.
However the expected completion date for the Construction Works will be on June 03, 2015. A big gap, for about
18 Months, has been observed between the completion date of new Supervision service Contract and
Construction Works Contract.
Implications:
Opens to Financial Claimby the Consultant for the rest of Contract Duration after Completion of
Construction Works.
According to PE’s explanation, the period of 18 months for the new service agreement and the completion of the
project (June 03, 2015) is due to the fact that the PE has anticipated that the works will not be completed by June
03, 2015.
The PE’s justification is based on assumption and expectation, however better to be supported with facts
along with detail analysis. Therefore it will be hard to justify for the appropriateness on the allocation of
Contract Duration for the Service based on PE’s explanation.
With respect to financial claim, the PE stated the following: –
 The first thing, the works contract is unlikely to be completed on June 03, 2015,
 Secondly, the Consultancy Service is a time-based contract which the consultant is paid for the time
(period) that he offers service. Hence, there is no ground for the consultant to claim for the period it has
not delivered services.
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1.2.4 Compliance with Contract Requirements

1.2.4.1 Replacement of new Firm on the Supervision Service Contract:
Replacement of new Firm has beencarried out for the continuation of Supervision Service Contract to the
Construction Works. The PE’s reason wasdue to the expiry of the Contract made with the originalSupervision
Consulting Firm.
There is no Contractual Provisionincorporated on the Contract Agreement for replacing the original Consulting
Firm due to such cases. However, in contrary, the following condition is included for the extension of the Contract.
As per Clause GCC 13.1 of the Special Conditions of Contract of the Contract Agreement entered with
originalSupervision Consulting Firm, it says,
‘If the works are not completed with the original anticipated date, the Construction Supervision Service
shall also be extended in agreement with the Client’.
As per the Contractual Provision described above, the PE has a chance to renew the Supervision Service
Contractand continue with originalSupervision Consulting Firmby extending the Contract along with the
anticipated completion period ofthe Construction Works unless come upon good reasons for termination.
Implications:
It has been observed on the problem of continuation on properly taking over the supervision services as
well as the preparation of the required progress reports for construction works timely by the newly
assigned Consulting Firm,
There will be a possibility of taking over or interruption on finalizing pending issues due to information
gap.
PE’s explanation to the issue,
Clause GCC 13.1 of the Special Conditions of Contract mentions that the Service can be extended in
Agreement with the PE, so that it is not contractually binding on the part of the PE to extend the service
beyond its expiry date unless it is agreed to extend it.
In addition the PEstated that the replacement of new consultant is made as per Article 51 of the Ethiopian
Federal Government Procurement and Property Administration Proclamation No. 649/2009 as well as Article
25.1 of the Federal Public Procurement Directive June 2010.Hence, the PE cannot simply renew the
Supervision Service Contract based on its own free will.
1.2.4.2 Insurance against the Risks and for the Coverages:

Problems have been observed on administering timely on Insurance against the Risks and for the Coveragesin
compliance with Contractual Requirements on both Supervision and Construction Works Contracts.
Implications:
No claimscan be issued by the PE for any loss or damage to works, property, material & equipment or
injury, death to persons and others mentioned in both Contracts.
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Construction Works:The Contractor is contractually obliged to furnish the following mentioned insurances
before the commencement of the work. However, the following insurance policies & premium could not be
finalizeduntil the reporting period of Dec., 2014;
 Professional Indemnity Insurance for Design (sub-clause 18.2): theContractor shall effectProfessional
Indemnity Insurance, which shall insure the contractor’s liability by reason of professional negligence in the
design of the works.
 Insurance for Works equipment (sub-clause 18.2): the Contractor shall insure the construction equipment,
plant, material & works in the joint name of Employer, the contractor&subcontractor against all loss or
damage (Contractor’s All Risk Insurance),
 Insurance against injury to persons & damage to property, Third Party Insurance(sub-clause 18.3) the
Contractor shall insure against liabilities to third parties in the joint name of Employer the
contractor&subcontractor for any loss, damage, death or bodily injury (the limit of third party insurance is
Birr 2,000,000.00),
 Insurance for workers (sub-clause 18.4): the Contractor shall effect and maintain insurance against loses
and claims arising from the death or injury to any person employed by the Contractor or any Subcontractor.
The issue has been forwarded to the PE and addressed the following:
Since it is the contractor’s responsibility to establish the required insurance policies any if any risk happens
to the work contract, it will be covered by the contractor himself so that no risk will be transferred to the
Employer.
Construction Supervision Service:No evidencesare available for insurances required by the Supervision
Service Contract (General and Special Conditions of Contract stated in Clause 48.1 – i, ii, iii and v) showing that
such insurances have been taken out and maintained by the Supervision Consultants.
The only document available on the Contract Document is Professional Indemnity Policy as required by General
and Special Conditions of Contract stated in Clause 48.1 – iv.
The issue has been forwarded to the PE and addressed the following:
The Special Conditions of Contract stated in Clause 20.1 specify the insurance coverage that are required to
be established by the consultant. However, this contract should be read in conjunction with the works
contract which the consultant is going to supervise. Accordingly, the insurance coverage specified in the
SCC stated above are deemed to be covered by the work contract.For instance, since the consultancy
contract has no provision for vehicles other than work contract, the consultant does not have the obligation
to provide ‘third party motor vehicle liability insurance.’ It is the contractor’s obligation to provide suchthe
insurance coverage.
In order to solve the issues, several correspondences have been forwarded by the Supervision Firm and
Employer and discussions have been held with the Contractor. It has been seen some progresses on processing
the required insurances for approval. However the furnishing of required insurances timely and in compliance with
the contractual requirements is under question. There is no latest information available whether the issues are
resolved or not. In any case the contract shall be administered properly in compliance with its contractual
provisions and it is our concern for the PE to reacttimely and make action on resolving the issues in compliance
with the GGC, Sub Clause 18.5 and other related provisions as required.
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2. Introduction
The report is organized in the order of PE’s implementation on Procurements and Contracts of the project from
Design to Construction stage.In each part, the disclosure and assurance process of Procurement and Contract
implementations of the PE are verified and analyzed separately in compliance with the respective requirements
and Contract/Project specific issues are identified. Finally recommendations for the key findings and further
review are outlined.
At the last part of this report, detail lists of Procurement, Contract and Project information are disclosed
separately for every Contract of the relevant project in the Standard Disclosure Template of CoST – Ethiopia as
per the information taken from available documents.
For the preparation of this report, the AP has gone through the following core activities in order to address the
main objectives of the assignment.
2.1 Main Objectives of the Assignment

The AP’s Core Activities:
 Collect project information from the PEand, where necessary, consultant and contractor on selected
project in order to ensure the publication of the relevant Material Project Information (MPI) as outlined in
the Disclosure Standards of CoST – Ethiopia.
 Verifies the accuracy and completeness of informationcollectedand produce reports.
 Analysesthe informationobtained in order enable the public to make informed judgements about the cost,
time of delivery and quality of the built infrastructure,
 Produce reports that are clearly intelligible to the non-specialist, highlighting the main findings and cause
for concern the analysed information reveals.
 Make presentations to NMSG-EC, multi-stakeholder forums, get feedbacks and refine the report
accordingly.
The assurance processesand the information disclosed in this report are presented in a simple and intelligible way targeting
to be addressed to the public equally without difficulty.
2.2 Challenges of the Assurance Process

All the required documents have been collected from PE for preparation of this report. WithoutPE’sinvolvement
on the provision of required relevant documentsthis report couldn’t be produced. The PE’s effort and cooperation
is appreciated.
Due to some inconveniency, however, it has been seen on problem of provisions for key documents within the
expected period of time and collected lately as per discussion with PE’s representatives.
2.2.1 Lists of Documents Collected Lately

1. EOI Assessment Report for the 1st Design & Supervision Service,
2. EOI Assessment Report for the2nd Design & Supervision Service,
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3. Bid Document for the2nd Design & Supervision Service,

4. Bid Document for Construction Works,
5. Quarterly Progress Report No. 14, December 2014,
6. Material Advance Payment Bond (Birr 47,396,000.00),
7. Documents related to EOT,
8. Latest PE’s comment submitted based on draft report, (submitted after finalizing the final draft report).
Nevertheless the PE’s effort & cooperation,the following lists of documents and issues for clarifications are still
pending.It could be unusual and hard to get information for the first 4 lists of documents as it may
requiregathering information outside from PE’s office.
2.2.2 Lists of Unavailable Documents

1. Project budget approval date,
2. Project start date (planned, actual),
3. Planned/ Original duration for completing the whole project,
4. Planned/Original cost of the overall project,
5. EOI evaluation Report for the initially cancelled Design & Supervision Service,
6. Bid Document for the 1st Design & Supervision Service,
7. Latest Annual, Quarterly or Monthly Progress Reports,
8. Total Cost for Right of way,
9. Approved Payment Certificates for bothSupervision Service Contracts (latest),
10. Instruction Notices forwarded to Construction supervision Firms to Commence their Contracts.
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3. Disclosure of Project Information
In thisreport, the disclosure of project information is carried out for Lot IIpart of the Debark – Buahit – Dilyibza
Design and Build Road Project;namely,Buahit – Dilyibza Design and Build Road Project and covers mainly for
Procurement and Contract implementations.
The main sources of information disclosed in this reportare obtained from copies of documents collected from
PE.The collection of those documents has been carried out in accordance with the letter CoST – Ethiopia Ref.
No. CoST-E/Ad/01/124/14 dated 06/04/07 E.C. forwarded to the PE.
The AP has made an effort to acquire all relevant documents for the study by making contacts among respective
bodies and departments of the PE in different time. The PE’s response was appreciated and provided partly copy
of the documents through its assigned focal person and from respective departments. However some additional
and important information are required for the study which can make the report complete.
The overall lists of project information for the project under review are disclosed in the Standard Disclosure
Template of CoST – Ethiopia at the end of this report.
3.1 Project Overview

Buahit – Dilyibza Road Project is a portion of the Debark – Buahit – Dilyibza Design and Build Road
Projectintended to construct 57.8 km to Double Bituminous Surface Treatment (DBST) road standard.It is located
in Amhara National Regional State in North Gonder Zone particularly in Debark, Janamora and Beyeda Woredas.
The start of the project begins at Buahit (eastern limit of Debark Woreda). The road passes through Janamora
Woreda and terminates at Dilyibza, a capital of Beyeda Woreda.
3.2 Scope of the Project

The main scope of the project involvesthe construction of a road that connects Buahit, Cheroleba village and
Dilyibza town to DS5 Double Surface Treatment standard.
The Projectcomprise the Design and Construction of 57.8 km new Roadto DBST standard starting from Buahit
and terminates at Dilyibza including construction of minor and major drainage structures using the available
designs prepared in 2005 and 2006 as a scope or preliminary design.
3.3 Socio Economic Benefits of the Project

To address development constraints by poor conditions and restricted access and, owing to the importance of the
road transport in supporting socio and economic growth and in meeting poverty reduction, the FDRE has placed
an increased emphasis on improving the quality and size of the road infrastructure. The Government of Ethiopia
formulated in 1996, a ten years Road Sector Development Program. To this end, the Government has made a
huge investment towards improvement of the road network. These investment outlays cover the rehabilitation or
upgrading of the main trunk, link and rural roads, and construction of new roads to expand the network.
The implementation of the relevant Road Project will bring a number of significant social and economic benefits to
the area of influence.The potential benefits are expected to lead to much improved quality of life of the local
communities. In general; the main potential beneficial impacts of the road project include the following:
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3.3.1 Socio-Economic Benefits during Operation

The construction and operation of the road will open an access in areas that have been remote and inaccessible.
This is expected to bring a significant improvement in the socio-economic conditions in the project influence area.
There will be a considerable reduction in travel time and costs once the road is in operation.
Operation of the road will support the provision of a wider and better range of government services including
potable water, health care, education, administration and extension services. Improved access will make possible
increased mobility of government officials and employees, goods, materials and the resources required to run the
abovementioned services. With improved services, the living condition of the people in the region will also
improve.
In addition, improved access will enable the easier dissemination and transfer of knowledge and modern
technology to rural farming communities, thereby creating the incentive or opportunity to increase productivity and
better land use practices. It will increase the potential availability of agricultural inputs in time and in adequate
quantities, and may reduce input costs due to lower transport costs, and this will intern increase productivity.
Construction of the road will relieve the existing accessibility and transportation problem, as it is likely to lead to
introduction of transport services and improved communication in the influence area.
3.3.2 Positive Impacts on Tourism

With easy access during the operation period, it could be expected to experience an increase in the volume of
tourists visiting the site particularly the Mt Ras Dashen areas. The benefit from increased volume of tourists is
expected to out-weigh the benefit from the tourism at the present condition.
The road section beyond Cheroleba traverses down hills of the Ras Dashen Mountain escarpments, as a result
implementation of the project will facilitate access to the one of the magnificent tourist attraction site of the SMNP
areas.
3.3.3 Creation of Job Opportunities during Construction

During the construction phase, the road project will provide employment opportunities and income benefits for the
local people. Some of the skilled and semi-skilled workforce will probably be recruited from outside the project
area, as a result of the shortage of suitably qualified and experienced workers in the area. However, unskilled
workers will be recruited locally, which will result in the creation of jobs probably for around 3 years for the whole
length of the Road Project. The creation of regular wage is important particularly to poor people since there are
currently few other job opportunities other than agriculture are available in the area. There will also be some
indirect job opportunities by creating the potential for new markets and services.
3.4 Undesired Impacts of the Project

Construction and operation of the road will cause several significant adverse impacts, most of which are on the
natural environment but some also on the members of the local communities. Most of the potential negative
impacts will occur mainly in relation to the project location (in difficult topography), land acquisition, execution of
the construction works and exploitation of material sources. Many of the adverse environmental effects will be of
temporary and reversible in nature, and can be reduced to acceptable level with good engineering practices and
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environmental mitigation measures. But there are also some permanent impacts including land taking, drainage
and landscape modification, disruption of wildlife, and relocation of people, which must be properly mitigated or
compensated for. It is expected that most of the identified impacts can be mitigated satisfactorily and residual
impacts can be reduced to acceptable levels through adoption of the specified mitigation measures.
3.5 Source of Funding and Project Cost

The Federal Democratic Republic of Ethiopia (FDRE) represented by Ethiopian Roads Authority has allocated
sufficient budget to finance payments for the Project. Consequently, Ethiopian Roads Authority have beencarried
out the procurement processes of the Construction Supervision & Design and Construction Works of the project
in different time and made contract agreements to the qualified respective companies.
3.6 Project Duration

There is no document available to disclose the PE’s plan for the intended start date and completion of the Project.
However, the first Notice to request EOI for Design and Construction Services was posted on the Ethiopian
Herald Newspaper on the date of December 15, 2008.Currently the Construction Works are ongoingandcouldn’t
be completed as per the intended completion date of the Contract Agreement.
Page 16 of 49
4. General Overviews on Procurement & Contract Information
The PE has carried out four Procurement processes &entered into three Contract Agreements for the project
under review as shown in Table 4.1.
Table 4.1: List of Procurement Processesundertaken and Contracts Made
Item
Procurement undertaken Contract Made for
No.
Consultancy Service for Design (EIA, FS, etc.) and Construction
1 No Contract was made
Supervision
Consultancy Service for Construction Supervision Construction Supervision
2
(1sttime) (1sttime)
Consultancy Service for Construction Supervision Construction Supervision
3
(2ndtime) (2ndtime)
4 Construction Works Design and Construct
Initially the PE has carried out shortlisting and evaluation of proposals of Consulting Firms for the Consultancy
Services of the review of EIA Studies, Detail Engineering Design; Feasibility Study, Preparation of Resettlement
Action Plan and Tender Document Preparation and Construction Supervision for the Project under review. As per
the final result of evaluation, the PE couldn’t entered into Contract due to the following the following reasons.
Considering the absence of adequate competition in the bidding process,
Unreasonably high offer of the scorer consultant for phase I and II, which is a sign of front loaded offer,
and
Considering a lower offer for phase III of the objectives of the service.
Due to the cancellation of the above Bid, the construction works were tendered based on Design and Build
Contract strategy taking into account the urgency of the project and using the previous design as a scope design.
The Construction Supervision Contract was also re-tendered separately.
After finalizing the Procurement Processesfor both Supervision and Construction Works, the PE has entered into
Contract Agreement to those scorers simultaneously and started the Contract on April 25, 2011. The construction
works couldn’t be completed as per the original Contract Duration. Therefore, considering the expiry of the
original Contract period, the PE has made an additional invitation for Construction Supervision and awarded
theContract to other qualified Consulting Firm.
Currently the construction works are on progress along with supervision service by the later Supervision
Consultant.
Page 17 of 49
5. Disclosure of the Design & Supervision Service Procurement Information
The PE has carried out the tendering and procurement process for Consultancy Services of the review of EIA
Studies, Detail Engineering Design; Feasibility Study, Preparation of Resettlement Action Plan and Tender
Document Preparation and Construction Supervision for the Project under review. As per the final evaluation
result of Proposals, no Contract was formed for the Bid due to certain recommended reasons by TAC.
5.1 Disclosure of Procurement Information

The disclosure of the procurement information is carried out based on references made from copies of Technical
and Financial Bid Evaluation Reports collected from PE.
5.1.1 Overview of the Procurement Process

The Notice to request EOI for the relevant service first posted on the Ethiopian Herald Newspaper on December
15 and 16, 2008 with a deadline for submission on 31 st day of December 2008. Consequently, the following six
firms,listed in Table 5.1 below, were shortlistedand invited to submit their Technical and Financial Proposals on or
beforeMay 28, 2009 at 2:45 PM through ERA’s letter dated April 21, 2009.
Table 5.1: List of firms who were invited to submit proposals
Item
Name of Consulting Firms Country
No.
1 Intercontinental Consultants and Technocrats Pvt. Ltd. (ICT) in JV with Intercontinental
Consultants and Technocrats Ethiopia Private Limited Company (ICTE) and OMEGA India/Ethiopia/Ethiopia
Consulting Engineers plc
2 United Consulting Engineers /UNICONE/ plc Ethiopia
3 CORE Consulting Engineers plc in JV with BEACON Consulting Engineers plc Ethiopia/France
4 SABA Engineering PLC Ethiopia
5 Construction Design Share Company Ethiopia
6 Associated Engineering Consultants plc Ethiopia
Out of six invited firms, only two (2) of them have submitted their proposals on or before the deadline for
submission of proposals.
Table 5.2: List of firms who submitted proposals
Item No. Name of Consulting Firms Country
2 Construction Design Share Company Ethiopia
The envelopes containing the technical proposals were opened immediately after the deadline for submission of
proposals in the presence of ERA’s CAC members and representatives of consulting firms.
The Technical Analysis Committee (TAC), having performed the detailed evaluation of the proposals, submitted
their analysis to Contract Award Committee (CAC).
Page 18 of 49
The final Technical Proposals Evaluation Report was endorsed by CAC and approved by the DG on 30/07/2009.
As per the technical evaluation result,only one consulting firmwas technically responsive.
The financial proposal of the only one technically responsivefirm was opened on August 11, 2009 at 2:30 pm in
the presence of ERA’s CAC membersand representative of the firm.
The tendering procedure and the evaluation of financial proposal was carried out by TAC. The selection criterion
for the highest score of the firm is based on the aggregate score results of 80% technical and 20% financial
proposals.
TAC, after having evaluated the financial proposal, recommended the following reasons for re-tendering;
Considering the absence of adequate competition in the bidding process,
Unreasonably high offer of the scorer consultant for phase I and II, which is a sign of front loaded offer,
and
Considering a lower offer for phase III of the objectives of the service.
Considering the above reasons, the PE didn’t award the Bid to the scorer instead cancelled the Bid and re-
tendered the construction works based on Design and Construct Contract strategy taking into account the
urgency of the project and using the previous design as a scope design.
5.1.1 Verification of the Disclosed Procurement Information

The items of information disclosed in this report are verified in terms of completeness with respect to the
requirements of CoST Standard Disclosure Template and the degree of their accuracy with respect to the
referred documents in the following way.
5.1.1.1 Completeness of the Disclosed Procurement Information
The lists of Procurement information disclosed on the Standard Disclosure Template of CoST – Ethiopia are
based the following documents collected from PE:
1. Technical Evaluation Report (Hard Copy),
2. Combined Evaluation Report (Hard Copy).
3. Latest PE’s comment submitted based on draft report.
Out of 29 only 18 lists of Procurement information are relevant and required to be disclosed on the Standard
Template as no Contract Agreement was formed for the bid. Most of the lists of information are disclosed except
four due to unavailability of bid and other relevant documents, as described in Table 5.3, below.
Table 5.3: List of unavailable documents and required information
Item No. Unavailable Documents Required Information
Copy of Procurement Notice
1 Type of Procurement
EOI Evaluation Reports
2 Number of Applicants for EOI to the Bid
Bid Document
3 Type & Amount of bid security
Evidence for any complaint
4 Content of any complaint lodged
Page 19 of 49
5.1.1.2 Accuracy of the Disclosed Procurement Information

The disclosed items of information are taken from collected copied documents provided from PE through the
assigned focal person and District office staff. No further cross check has been made on copied documents from
their respective original documents by the AP however taken and assumed as a true source for the reference.
There is no copy of document available for the lists of information related to Procurement Notice and reference is
made from secondary sources as seen in Table 5.4 below.
Table 5.4: Lists of Secondary Information Disclosed and their Sources
Item No. Lists of Information Documents Referred
1 Media used for procurement notice Technical Evaluation Report
2 Floating period of the procurement notice, and Technical Evaluation Report
3 Media used for procurement notice Technical Evaluation Report
5.1.2 Analysis of the Disclosed Procurement Information

1) Access problem to EOI Evaluation Report:
This report couldn’t incorporatethe analysis on PE’s transparency to theRequirements and Evaluation
Processes for Shortlisting Consulting Firms due to unavailability of the respective Evaluation Reports from
PE’s office.
2) Submission Problem of Bid Offer:
Out of six (6) prospective shortlisted Bidders, only two (2) of them have submitted their qualification
applications and financial offers. The inadequacy of Firms on participation of the respective Bid has resulted
inas one of the reasons for the cancellation of the Bid.
There is no document available to justify the reasons for the Bidders on declining to submit their bid offer.
The issue has been forwarded to the PE’s and gave the following explanation:
All the six shortlisted firms have been invited to submit their proposal. Four consultants have not
submitted their proposals at their own discretion; whereas, in ERA’s letter of invitation to submit
proposal the consultants were requested to confirm whether they are going to submit their proposal for
the project or not.
Page 20 of 49
6. Disclosure of the 1st Construction Supervision Procurement & Contract Information
The PE has entered into two Construction Supervision Contracts with different Consulting Firms in order to
supervise the Construction Works. The need for additional Supervision Contract was due to the expiry of the
contract duration of the first Supervision Contract. Initially the PE has entered into Contract Agreement with
DANA and Associates Plc Consultants in JV with IDCON Infrastructure Development Consultant plc on April 05,
2011.


The advertisement for EOI for shortlisting of capable consulting firms was published on the Ethiopian Herald
Newspaper on September 30 and 31, 2009 with a deadline for submission of 20 th day of October 2009. After
approval of shortlisted firms on January 01, 2010 by DG of ERA, the following six (6) firms, listed in Table 6.1
below, have been invited through ERA’s letter dated January 13, 2010 to submit their Technical and Financial
Proposals on or before February 25, 2010.
Item
No.
1 Beza Consulting Engineers plc (Ethiopia) in JV with Beza Consulting Engineers plc
Ethiopia/Kenya
(Kenya)
2 CORE Consulting Engineers plc Ethiopia
4 SAI Consulting Engineers plc India
5 DANA and Associates Plc Consultants in JV with IDCON Infrastructure Development
Ethiopia/Ethiopia
Consultant plc
6 Gulf Engineering and Industrial Consultancy Qatar
The following three (3) firms have submitted their proposals on or before the deadline for submission of
proposals.
Page 21 of 49
Table 6.2: List of firms who submitted proposals

Item
No.
3 DANA and Associates Plc Consultants in JV with IDCON Infrastructure Development
Ethiopia/Ethiopia
Consultant plc
The final Technical Proposals Evaluation Report was endorsed by CAC and approved by the DG on 30/04/2010.
As per the technical evaluation result consulting firms who submitted proposals were technically responsive.
The financial proposals were opened on 13th of May 2010 at 3:00 pm in the presence of ERA’s CAC members.
The tendering procedure and the evaluation of financial proposals were carried out by TAC. The selection
criterion for the highest score of the firm is based on the aggregate score results of 80% technical and 20%
financial proposals.
TAC, after having considered the scores and conditions proposed by the consulting firms, recommended and
CAC members endorsed to award the contract to DANA and Associates Plc Consultants in JV with IDCON
Infrastructure Development Consultant plc with ceiling contract amount of ETB 16,467,951.13 inclusive of VAT
and local taxes on 08/11/2010.
On December 15, 2010, contract negotiation has been carried out between ERA and the scorer consultant. As
per the discussion, both parties have agreed the original proposed contract amount of the service, which was
ETB 16,467,951.13, is changed to ETB 12,541,092.13 inclusive of VAT and local taxesas a Contract Price and
made agreement on April 5, 2011.

referred documents in the following sections.
The lists of Procurement information disclosed on the CoST Standard Disclosure Template are based the
following documents collected from PE:
1. Bid Evaluation Report (Hard Copy),
2. Combined Technical & Financial Evaluation Report (Hard Copy),
3. Contract Document (Agreement)(Hard Copy),
Page 22 of 49
4. Expression of Interest (EOI) Assessment Report.

Out of the required 29 lists of Procurement information,only 2 items of information couldn’t be disclosed due to
unavailability of documents, as described in Table 6.3, below.
PE’s instruction notice to commence
1 Contract Start Date
2 Intended Completion Date

assigned focal person and District office staff.No further cross check has been made on copied documents from
their respective original documents by the APhowevertaken and assumed as a true source for the reference.

1) Period of Procurement Process:
The shortlisted Bidders have been invited through ERA’s letter dated January 13, 2010 to submit their
Technical and Financial Proposals on or before February 25, 2010. The evaluation report has been finalized
on 08/11/2010 and the negotiation with the scorer firm has been done on 15/11/2010 after 9 months and 20
days’ time. The PE entered into Contract Agreement with the scorer firm on April 5, 2011.
Closing date of Bid submission = February 25, 2010 (25/02/2010),

Evaluation report completion date = 08/11/2010,
Signing date of Contract = April 5, 2011 (05/04/2011),
Actual elapsed period of Procurement process (from 25/02/2010 to 05/04/2011) = 13 months and 10
days,
Expected completion of Procurement process = 3 months
Difference = 10 months and 10 days,
There was a delay on processing the procurement for more than 10 months than expected.
The issue has been forwarded to the PE’s and gave the following explanation:
The PE admits that the approval of combined technical and financial evaluation repot has taken considerable
time; but, what matters most is the procurement of Construction Supervision Service shall be/was
undertaken concurrently & side by side of the Construction Works Contract, while Works contract tender
may have a chance of being cancelled or other decisions may be made on the way forward to delivery or
scope change, the approval process of supervision contract may be pended/ delayed until the procurement
process of the works contract reaches to a promising level of approval. Accordingly procurement undertaken
Page 23 of 49
and the contract agreement for the Construction Supervision Service and the works contract were signed on
April 05, 2011 and April 25, 2011 respectively.
2) Submission Problem of Bid Offer:

Out of six (6) prospective shortlisted Bidders, only two (3) of them have submitted their qualification
applications and financial offers. There is no document available to justify the reasons for the Bidders on
declining to submit their bid offer.
3) Issues on Replacement of Firmonthe Service Contract:
The PE couldn’t extend the original Construction Supervision Contract instead continued the Supervision
Service for the Construction Works to be carried out by another Supervision Consulting Firm. There is no
document available to justify the reasons for the case, however, as per Clause GCC 13.1 of the Special
Conditions of Contract of the Contract Agreement entered with originalSupervision Consulting Firm, it says,
‘If the works are not completed with the original anticipated date, the Construction Supervision Service
shall also be extended in agreement with the Client’.
Therefore, as per the Contractual Provision described above, the PE shall continue with the
originalSupervision Consulting Firmunless have adequate reasons for withdrawal.
The issue has been forwarded to the PE and gave the following explanation:
Clause GCC 13.1 of the Special Conditions of Contract mentions that the Service can be extended in
Agreement with the PE, so that it is not contractually binding on the part of the PE to extend the service
beyond its expiry date unless it is agreed to extend it.
In addition the PEstated that the replacement of new consultant is made as per Article 51 of the Ethiopian
Federal Government Procurement and Property Administration Proclamation No. 649/2009 as well as Article
25.1 of the Federal Public Procurement Directive June 2010.Hence, the PE cannot simply renew the
Supervision Service Contract based on its own free will.
6.2 Disclosure of Contract Information

Most of the items of Contract information are disclosed in this report as per the disclosure template and analyzed
to those items as per the available documents.
6.2.1 Overview of the Contract

The PE, after finalizing the Procurement Process, has initially enteredinto Contract Agreement with DANA and
Associates Plc Consultants in JV with IDCON Infrastructure Development Consultant plc with ceiling contract
amount of ETB 16,467,951.13 inclusive of VAT and local taxes on April 5, 2011, in order to carry out the
Construction Supervision Services for the Construction Works of the Road Project. The Contract has commenced
on April 25, 2011 however terminated by the PE due to the expiry of the Contract.
6.2.2 Verification of the Disclosed Contract Information

Page 24 of 49
6.2.2.1 Completeness of the Disclosed Contract Information

The respective staff of the PE from District office has initially provided copied Contract document. However the
reference could not be enough for the assignment and further communication has been carried out with PE’s
representative however no additional documents could be collected.
Seven out of 13 lists of items of Contract implementation information are disclosed.Some of the lists of
information, however, due to unavailability of relevant documentscouldn’t be disclosed as described in Table 7.3,
below.
Documents for Safety and Dispute issues
1 Safety Measures (accident & death)
Furnished Warranty Documents
2 Warranty type and description
Changes to Contracts (if any)
3 Changes to Contract Price
4 Changes to Contract Scope
Document for Liquidated damage (if any)
5 Liquidated damage if applied
6.2.2.2 Accuracy of the Disclosed Contract Information

Most of lists of contract information are referred from Quarterly Report no. 14. There is no sign and stamp on
each page of the report,except one forwarding letter for the report, however taken as a reference for the
information.
Page 25 of 49
7. Disclosure of the 2nd Construction Supervision Procurement & Contract Information
Following with the withdrawal of the 1st Construction Supervision Contract, the PE has entered into Construction
Supervision Contract Agreement for the 2nd time with Transport Construction Design Share Company
onDecember 15, 2014 in order to carry out the continuation of the construction supervision and follow up of the
full engineering design and construction works of the relevant project.


The advertisement for EOI for shortlisting of capable consulting firms was published on the Ethiopian Herald
Newspaper on April 07 and 08, 2014 with a deadline for submission of April 23, 2014. After approval of shortlisted
firms on July 25, 2014 by DG of ERA, the following six (6) firms, listed in Table 7.1 below, have been invited
through ERA’s letter dated July 30, 2014 to submit their Technical and Financial Proposals on or before
September 02, 2014 at 2:30 PM.
Item No. Name of Consulting Firms Country
2 Best Consulting Engineers plc Ethiopia
3 Beza Consulting Engineers plc(Ethiopia) Ethiopia
5 DANA and Associates Plc Consultants Ethiopia
6 Transport Construction Design Share Company Ethiopia
All the invited firms have submitted their proposals on or before the deadline for submission of proposals.
The final Technical Proposals Evaluation Report was endorsed by CAC and approved by the DG on September
24, 2014. As per the technical evaluation result all consulting firms who submitted proposals were technically
responsive.
The financial proposals were opened on October 16, 2014 at 2:30 pm in the presence of ERA’s CAC members.
The tendering procedure and the evaluation of financial proposals were carried out by TAC. The selection
criterion for the highest score of the firm is based on the aggregate score results of 80% technical and 20%
financial proposals.
Page 26 of 49
TAC, after having considered the scores and conditions proposed by the consulting firms, recommended and
CAC members endorsed to award the contract to Transport Construction Design Share Company with ceiling
contract amount of ETB 12,690,599.17 inclusive of VAT and local taxes on 18/11/2014.

The items information disclosed in this report are verified in terms of completeness with respect to the
1. Bid Document,
2. Expression of Interest (EOI) Assessment Report,
3. Technical Proposal Evaluation Report (Hard Copy),
4. Combined Evaluation Report (Hard Copy),
5. Contract Document (Agreement)(Hard Copy).
29 lists of Procurement information are required to be disclosed on the Standard Template. Most of the lists of
information are disclosed based on the collected documents.

1) Issues on the allocation of Contract Duration:
The PE has entered into Contract Agreement for the Supervision service on December 15, 2014 for the
intended Contract Duration of 24 Months.As per the agreement the completion date of the Contract will be
after December 15, 2016.
However the expected completion date of the Construction Works will be onJune 03, 2015. There is a huge
gap for about 18 Months of difference between the completion date of Supervision and Construction Works
Contracts.
According to PE’s explanation, the period of 18 months for the new service agreement and the completion
of the project (June 03, 2015) is due to the fact that the PE has anticipated that the works will not be
completed by June 03, 2015.
The PE’s justification is based on assumption however better to be supported with facts along with detail
analysis. Therefore it will be hard to justify for the appropriateness on the allocation of Contract Duration for
the Service based on PE’s explanation.
Page 27 of 49

Most of the items of Contract information are disclosed in this report as per the disclosure template and analyzed

The PE, after finalizing the Procurement Process, has entered,for the second time, into Contract Agreement with
Transport Construction Design Share Company with ceiling contract amount of ETB 12,690,599.17 inclusive of
VAT and local taxes on December 15, 2014, in order to carry out the continuation of Construction Supervision
Services for the Construction Works of the Road Project. The Contract has commenced and is currently ongoing.
The Contract and intended to be completed along with the completion of the Construction Works.


The respective staff of the PE from District office has initially provided copied Contract document. However the
reference could not be enough for the assignment and further communication has been carried out with PE’s
representative however no additional documents could be collected.
Some of the lists of information are not applicable as the Contract is new and in progress. However, due to
unavailability of relevant documents4out of 13 lists of items of Contract implementation information couldn’t be
disclosed as described in Table 7.2, below.
Documents for Safety and Dispute issues
1 Safety Measures (accident & death)
Furnished Warranty Documents
2 Warranty type and description
Latest Progress Report
3 % progress
4 Payment Certified

information.
7.2.3 Analysis of the Disclosed Contract Information

Insurance against the Risks and for the Coverages:
Page 28 of 49
No evidences are available for insurances required by the Contract Requirements (General and Special
Conditions of Contract stated in Clause 48.1 – i, ii, iii and v) showing that such insurances have been taken out
and maintained by the Supervision Consultant.
The only document available on the Contract Document is Professional Indemnity Policy as required by
General and Special Conditions of Contract stated in Clause 48.1 – iv,
Page 29 of 49
8. Disclosure of Design & BuildProcurement & Contract Information
The PE intended to construct the relevant Road Project using the services of a Contractor experienced in the
investigation, design and Construction of Roads and has tendered based on Design andBuild Contract. The work
consists of furnishing design plan, documentation, equipment, materials, labor and incidentals to successfully
complete the project in compliance with the Contract Provisions.
After finalizing the necessary Technical and Financial proposals Evaluations of the bidders, the PE has entered
into Contract Agreement to the scoreron 29th day of March, 2011. The Contract has started on April 25, 2011 and
now is in progress.


The procurement notice for invitation to bids was published on the Ethiopian Herald on 4 th and 5th September
2010. Pursuant to the notice of invitation, fifteen applicants have collected the tender documents before the
deadline submission of applications as shown in Table 8.1 below.
Table 8.1: List of Applicants who have collected the Bidding Documents
Item No. Applicant Country of Registration
1 AKIR Construction PLC Ethiopia
2 Amahara Road Works Enterprise Ethiopia
3 RAMA Construction PLC Ethiopia
4 Haziii General Contractor Ethiopia
5 SATCON Construction PLC Ethiopia
6 NKH Construction PLC Ethiopia
7 Gemshu Beyene Construction PLC Ethiopia
8 Doruk Insaat Taah ITH. ve. ITH.LTD.STI Turkey
9 PROGRESSIVE Construction Limited India
10 YENCOMAD Construction PLC Ethiopia
11 SUR CONSTRUCTION PLC Ethiopia
12 PERLITE Construction Company Iran
13 Tibeb Construction plc Ethiopia
14 CGC OVERSEAS Construction Eth. Ltd Ethiopia
15 ON-GUN Construction Contracting and Trading Co. Inc. Turkey
Total 15
Among the above fifteen prospective bidders who have bought the tender documents from ERA, only three (3) of
them (see Table 8.2) have submitted their qualification applications and financial offers in separate sealed
envelopes before/on December 16, 2010, 2:30 PM which is the latest date of submission of bids.
Table 8.2: List of Applicants who submitted their applications for post qualifications and financial Bids
Page 30 of 49
Item No. Applicants Country of Registration

2 ON-GUN Construction Contracting and Trading Co. Inc. Turkey
Total 3
The evaluation of bids has been a two stage procedure, namely, Post Qualification and Financial Bid Evaluation.
The evaluation process has been carried out by assigned TAC and recommended two bidders indicated in Table
8.3 below to be post-qualified and their Financial Bids to be opened. One bidder was rejected from further
evaluation due to bid security problem in compliance with sub-clause 13.1 of the bidding document.
Table 8.3: List of Post-Qualified Bidders
Item No. Applicants Country of Registration
Total 2
A report for post-qualification evaluation has been endorsed by CAC and approved by the DG of ERA on
February 02, 2011.
The financial bids of the post-qualified firms have been opened on February 16, 2011 at 2:30 pm.
TAC, having performed the evaluation of the financial bid, submitted their report to CAC.
After conducting discussions on TAC’s report on March 01, 2011, CAC members endorsed the recommendation
of TAC to award the Contract to the lowest evaluated bidder, SATCON Construction PLC, with a total lump sum
cost of ETB 947,920,000.00 including VAT.
The endorsement of the final Bid Evaluation Report for the Contract has been approved by the DG of ERA on
11/03/2011.
After the PE forwarded letter of acceptance letter on 28/03/2011, the Contract Agreement has been signed
between the two parties on 29th day of March, 2011.

1. Bid Document,
2. Post Qualification Evaluation Report (Hard Copy),
3. Bid Evaluation Report (Hard Copy),
Page 31 of 49

5. Quarterly Progress Report No. 14, December 2014 - (Hard Copy).
Additional Information:
The Contract has noEngineer’s Estimate and the information is taken from Bid Evaluation Report.
The PE has also confirmed after reviewing the report that the contract has no estimate prepared by
design consultant; rather, a general estimate was prepared by ERA (in house) based on quantities of
major construction works item (earth work {Normal and Hard Excavation}, Sub-base, base
course, and DBTS) obtained from concept design and prevailing Market (‘’Current’’) unit
rates/prices taken as average from other recently signed projects, considering also design risks.
Although such estimate may lack some accuracy, this was found to be a better option taking into
account the critical demand of the public (end users) and other stake holders, which was also a
pressing emergency to the Public Body.
The Commencement date the Contract and progress ofconstruction works are referred from copy of
monthly status report without signed and sealed on it collected from district staffs as well as not officially
distributed document to concerned parties.

8.1.3.1 Efficiency of the Procurement Process (Timeliness)
Period of Procurement Process: The financial bids was opened onFebruary 16, 2011 and finalized on
11/03/2011.Letter of acceptance letter was forwarded on 28/03/2011. The Contract Agreement has been signed
between the two parties on 29th day of March, 2011. The period elapsed to finalize the Technical & Financial
Evaluation was 60 days and 25 days respectively.
The period elapsed to finalize the procurement process was 85 days which the PE has shown good
performance in relation to the validity period of the bid proposal (90 days).
Floating Period: The procurement noticewas published on the date of 4 th and 5th September 2010 andthe latest
date of submission of bid was on December 16, 2010. There was about 101 calendar days of floating period for
the bidincluding the PE’s 37 days extension time. Initially the floating period was 64 days.
8.1.3.2 Fairness of the Procurement Rules on Participation

Submission Problem of Bid Offer:It has been observed that a lesser number of bidders have submitted their
qualification applications than expected as compared to the number of bidders who bought the Bid Documents.
Out of fifteen (15) prospective bidders who bought the tender documents for Design and Build Construction
Works, only three (3) of them have submitted their qualification applications and financial offers.
Page 32 of 49
One of the expected reasons for submission problem of bidders has been analyzed on the choice of the PE to
perform the construction works based on new delivery method (Design & Build).
Actually the PE’s initial plan was to procure the design service and construction works separately. Consequently
the PE has tendered the design service jointly with supervision service. However, due to submission problem of
Bid Offer by the prospective shortlisted bidders for Design and Supervision Services the Bid has been
cancelled.Following the cancellation, it has been decided not to conduct design and related studies separately by
the Consulting Firm,Following the cancellation, it has also been decided to procure the Construction works based
on Design & Build.
According to the PE’s explanation, it is stated that Design & Build method was found to be better
alternative since it was difficult for the PE to prepare design due to difficulty of the project area especially
the terrain with very limited access and includes Tourist Attraction centers/parks; hence, the delivery
method transfers the design risk to the contractor and ensures soonest possible delivery of the project for
intended purpose of the public.
As a general practice prevailed in our country, most of the construction works are tendered without incorporating
the design part in such a way that the probability of local contractors to have adequate experience on the new
delivery methodwill be low.Therefore the absence of such experience on the field could underminelocal
contractors to participate on the bid with full confidence. Moreover it is rare to have adequate and experienced
designers retained by the local contractors to overcome the design service. As a result of such and other related
case the probability of participation of local contractors on the new delivery method bid could be less.
In addition to these the evaluation criteria to be set out in the Bid Documentsfor new delivery system could be a
challenge for the bidders and contributing factor to the problem.
The issue has been forwarded to the PE to have their response on submission problem of bidders including
otherpoints of consideration to continue the procurement process with lesser bidders that expected. Accordingly
the PE addresses the following points.
According to the PE’s explanation the new delivery method could not be the reason for the problem of bid
submission as described below;
Thechoice of new delivery method for the bid could not be the reason for undermining the competition due to
the fact that the qualification criteria for bidding set with similar frame work adopted for traditional design-bid-
build delivery projects and does not require specific experiences in road design, survey and investigations
except separate design crews are required among the key personnelrequirements, which is not a rejection
criteria.
Rather, the PE stated the following potential reasons for shortage of competition which may be attributed to;
 Prospective bidders’ limitation of resources & capacity for the intended volume of works
 The DB system was almost a new entry to the construction sector, particularly to theroad sector of Ethiopia.
Associated to this, local bidders may not tend to simply accept the risks associated the delivery system and
payment modalities which are different from the traditional contracts by which the public body takes the
design risk and payment is based or BOQ (admeasurement contracts).
Page 33 of 49
 The decrease in participation of foreign bidders may be related to the tendering procedure, to which the
price quotation and payment is fully made in local currency.
Notwithstanding to the above, the following confirmations have been given by firms for similar other projects as
per the PE’s enquiry; which may be the potential reason for the case;
 The notice of invitation for bids didn’t show the major qualification criteria for qualifying, and bidders couldn’t
have a chance to assess their capability for bidding and/or executing the project.
 Bidders might not be able to finalize preparation of their bids before the deadlineof submission,
 Foreign contractors purchase the bidding document and send the same to their respective head offices
abroad. After the head office evaluates/prioritize projects under tender, the firms participate on those which
they are more interested based on type, location and complexity of projects, as well as in consideration of
progress of ongoing projects and resources allocated for same locally.
 In the meantime of the deadline for submission of bids for the subject project, a firm may be successful in
another project anywhere, and due to such commitment, a firm may not be capable to participate in the
tender,
 Etc.
It is clear that the consequences on submission problems of Bid Offer by the prospective bidders could not be
simple. The existence of more competitors on the bid will have a better benefit both on quality & cost for the PE to
select qualified contractor for the intended work. When we look on this respect, the probability of the PE on
loosing such benefits will be high.
On the other handwhen we look on the points consideration stated by the PE on keeping theirbenefit is
appreciated. The entry of new procurement system for applicable projects is a good start towards keeping public
body benefit in different angle. There will be also benefit for our local contractors to build up their capacity and
experience on the field. As a whole the practice of design and build procurement method has given a lot of
benefits to other countries which our country lacks before.
Apart fromthe explanation given, no information is addressed for the PE effort on dealing the matter and
discussion conductedat the time of occurrence.When we go throughthe PE’s response to the issues, it
concentrates on the potential reasons that may be attributed to the problems.

Most of the items of Contract informationare disclosed in this report as per the disclosure template and analyzed

The PE, after finalizing the Procurement Process, has entered into Contract Agreement with SATCON
Construction on 29th day of March, 2011 with a total lump sum cost of ETB 947,920,000.00 including VAT,in order
to carry out the Design and Construction of the respective RoadProject. The Contract has commenced on April
25, 2011.The Contract duration was1096 Calendar days and intended to be completed on April 25, 2014.Due to
Disruption to rock excavation in the park section, the PE has extended the completion time by 405 Calendar days
and revised to be completed on June 03, 2015. The cumulative progress of the work up to the end of Dec., 2014
Page 34 of 49
reporting period including Engineer’s Representative facilities, was 68.02 %. Up to the end of Dec., 2014
reporting period, 1340 calendar days has been elapsed. Currently the Contract is on progress.


Therespective staff of the PE from District office has initially provided copied documents of IPC and EOT.
However the references could not be enough for the assignment and further communication has been carried out
with PE’s representative and collected additional documents as described below:
2. Interim Payment CertificateDocument IPC No. 26 - (Hard Copy),
3. Employer’s Approval of the Extension of Contract Time (EOT No. 1) for the Completion of the Project -
(Hard Copy),
4. Quarterly Progress Report No. 14, December 2014 - (Hard Copy),
5. The Initial & the Extended Documents of Advance Payment - (Hard Copy).
information.
According to PE’s explanation it is stated that there is importance to sign and stamp on each page of monthly
progress report since the purpose of the report is to update the progress status of the project for each month.
Some information, like safety and dispute issues (accident & death), are taken from secondary source stated on
PE’s response on draft report.
8.2.3 Analysis of the Disclosed Contract Information

The implementation of the Contract for the design & construction works has been supervised by the assigned
consultant from the commencement date under the follow-up of the PE. The contractor’s performance has been
periodically reported to the PE by supervision firm and the December 2014 Quarterly Report no. 14 the one in
which the AP has carried out as a main source for the following analysis. The information for the performance of
the Contract couldn’t be analyzed due to the provision of latest Monthly or Quarterly Report by the PE.
8.2.3.1 Compliance with Contractual Requirements

Insurance against the Risks & for the Coverages:The Contractor is contractually obliged to furnish the
following mentioned insurances before the commencement of the work. However, the following insurance policies
& premium could not be finalizeduntil the reporting period of Dec., 2014;
Page 35 of 49
 Professional Indemnity Insurance for Design (sub-clause 18.2): theContractor shall effectProfessional
Indemnity Insurance, which shall insure the contractor’s liability by reason of professional negligence in the
design of the works.
 Insurance for Works equipment (sub-clause 18.2): the Contractor shall insure the construction equipment,
plant, material &works in the joint name of Employer, the contractor&subcontractor against all loss or
damage (Contractor’s All Risk Insurance),
 Insurance against injury to persons & damage to property, Third Party Insurance(sub-clause 18.3) the
Contractor shall insure against liabilities to third parties in the joint name of Employer the
contractor&subcontractor for any loss, damage, death or bodily injury (the limit of third party insurance is
Birr 2,000,000.00),
 Insurance for workers (sub-clause 18.4): the Contractor shall effect and maintain insurance against loses
and claims arising from the death or injury to any person employed by the Contractor or any Subcontractor.
8.2.3.2 Changes to Contracts

Changes to Contract Price: There is no change to the original Contract Price as the Contract is Turnkey (Design
& Build Contract) and Contract Provisions couldn’t allow for such changes. However there is an approved amount
of ETB 177,840,198.24until Dec, 2014for Price Adjustment to be paid for the Contractor.
Changes to Contract Duration: The PE has given an additional extension of time for a period of 405 Cal. Days
due to disruption to rock excavation in the park section.
Changes to Contract Scope: The original length of the road, which was 57.8 km, is changed to 72.551 km.
Page 36 of 49
9. Recommendation on the Key Findings and Further Review
It has been observed that the overall performance of the PE on Contract Procurements and its implementation
have been carried out in well-organized way. Detailed working procedures and criteria have been designed and
properly recorded. In line with the PE’s performance, however, some issues are observed and highlighted to the
concerns which the PE to look forward.
It is our concern to the PE on the management of bulky documents on maintaining and obtaining as required. It is
observed some difficulties to access records (for example, Evaluation Reports for EOI of Design and Supervision
Service) which had not been more than 10 years. It is not an easy task on maintaining the records as the PE is
performing huge number of projects within a year. However attention has to be given on designing and
implementing proper management system and it shall also be the PE’s duty to maintain such records in
compliance with article 32 of the PPA Directive.
It has been observed for taking prolonged time than expected for the completion of the procurement processes
Supervision Service Bid. We draw our attention to the PE to organize all the necessary resources and design
efficient procurement plans in consideration for the completion of the Supervision Service procurement process in
parallel with the respective Construction Works Bid.
Problem on submission of Bid offer by Bidders after purchasing is another issue observed for Construction Works
and Supervision Contracts. It is our comment for the PE’s attention to investigate the root causes for the problem
for further improvement. It is also advisable to look on the fairness of Bid requirements set out with respect to the
volume of works so that more Bidders can be participated for the Contract.
The replacement of Supervision Firm is another issue which the PE to look forward in compliance with the
Contract Provision and in terms of the benefit it gains for making an extension of Contract to the original
Supervision Firm. It is our belief to the PE on taking the advantages by complying with the Contract Provision to
the renewal of the original service Contract so that smooth continuation to supervision services will be prevailed.
The delay on timely furnishing the required Insurances by the Construction Works Contractor is the issue
observed which need PE’s attention. It is our concern for the PE that the contract shall be administered properly
and to reacttimely and make action on resolving the issues in compliance with in compliance with its contractual
provisions.
Finally it is our belief that the study has identified key findings and highlighted the necessary recommendations
which can contribute to some extent for the improvement of the PE’s on future performance.
Page 37 of 49
10. Project Information
DISCLOSURE OF PROCUREMENT & CONTRCT INFORMATION

PHASE
SUPERVISION SUPERVISION
ITEMS OF DISCLOSURE CONSTRUCTION
(PHASE I) (PHASE II)
Date of disclosure January 30, 2015

Consultancy Service for the Consultancy Service for the
Construction Supervision of Construction Supervision of Buahit Construction of Buahit – Dilyibza
Contract title
Buahit – Dilyibza Design – Dilyibza Design and Build Road Design and Build Road Project.
and Build Road Project. Project.
Amhara National Regional State in North Gonder Zone particularly in Debark, Janamora and
Location
Beyeda Woredas -begins at Buahit (eastern limit of Debark Woreda) and terminates at Dilyibza.
PROCUREMENT INFORMATION
Procuring entity Ethiopian Road Authority

Email: [email protected] p.o.box:1770 Addis Ababa/Ethiopia
Source for further information
Central District Office
Date of procurement notice September 30 & 31, 2009 April 07 and 08, 2014 4th& 5th September 2010
20 Cal. Days – EOI; 43 Cal. 15 Cal. Days – EOI; 34 Cal. Days - Initially 64 Cal. Days
Floating period of the procurement notice
Days - proposal proposal After Ext. 101 Cal. Days
Media used for procurement notice Ethiopian Herald Ethiopian Herald Ethiopian Herald
Method of procurement RFP RFP Open bid

Type of Procurement Consultancy Service Consultancy Service Works
Procurement procedure NCB NCB NCB

Request for EOI followed by
Request for EOI followed by Two
Evaluation criteria Two stage Evaluation Two stage Evaluation (LCBS)
stage Evaluation (QCBS)
(QCBS)
Type of contract Time based Time based Lump Sum
Page 38 of 49
Type & Amount of bid security ETB 10,000.00 Bid Securing Declaration ETB 500,000.00
Content of any complaint lodged No complaint lodged No complaint lodged No complaint lodged
Engineer’s estimate NA NA No Engineer’s estimate
Date of bid opening January 10, 2011 September 02, 2014 December 16, 2010
Applied for EOI - DNA
Applied for EOI - DNA
Participated – 3 ( invited by
Participated – 6 ( invited by ERA Participated – 3,
Number of bidders: Participated, rejected and ERA letter after EOI)
letter after EOI) Rejected – 0 and,
declined to submit Rejected – 0, and
Rejected – 0, and Declined to submit – 12
Declined to submit – 3
DANA and Associates plc
Engineering Consultants in
Transport Construction Design
Awarded firm/contracting firm JV with IDCON SATCON Construction PLC
Share Company
infrastructure development
Consultants plc
Minutes of negotiation Minutes of negotiation
Date of contract award March 28, 2011
December 15, 2010 November 25, 2014
ETB 12,541,092.13 incl. of ETB 12,690,599.17 including VAT
Award price/original contract price ETB 947,920,000.00 including VAT
VAT and local taxes and local taxes
Professional Indemnity
Professional Indemnity Insurance: Advance Guarantee:
Insurance:
 Insurance guarantee  Insurance guarantee
 Insurance guarantee
 ETB 12,690,599.17  ETB 164,855,652.17
Contract security type and amount  ETB 12,541,092.13 Performance Bond:
Advance Guarantee:  Insurance guarantee
Advance Guarantee:
 DNA  ETB 94,792,000.00
 DNA
Date of contract signing April 05, 2011 December 15, 2014 March 29, 2011
To carry out the Furnishing complete Design and Construction of 57.8 km of
construction supervision engineering services in all new Roadto DBST standard including
Contract scope and follow up of the full respects, including all field and construction of minor and major
engineering design and office work in strict adherence to drainage structures using the available
construction works of the the highest standards of the civil designs prepared in 2005 and 2006 as
Page 39 of 49
project. engineering profession and with a scope or preliminary design.
proper interpretation and full
understanding of the duties and
responsibilities of the Employer
representative for the
construction of the remaining
works.
Review for completeness

and adequacy of all survey Review for completeness and
and engineering design adequacy of all survey and The works of the contract consists of
works performed by engineering design works Design and Construction of new road.
Contractor and give performed by Contractor and give The project has a design length of 57.8
approval and/or suggestions approval and/or suggestions for km.
for improvement as per the improvement as per the terms of The project area is part of a high
terms of the contract the contract between the parties. mountain massive in northern Ethiopia
between the parties. To ensure that the road is with altitude ranging from 3100masl to
To ensure that the road is constructed in accordance with the 4300masl including Ras Dashen. The
constructed in accordance Technical Specifications, area is typified by generally high
with the Technical Engineering Drawings or any elevation and dissected terrain with
Specifications, Engineering amendments thereto and meet the rolling to hilly plateau in many parts,
Description of contract & Contract Drawings or any standard quality of the end product. and steep and very steep valley sides.
components amendments thereto and To optimize the use of available The topography is mostly rugged with
meet the standard quality of material resources to minimize the deep gorges, dissected plateau and
the end product. costs to the Client, to maximize the dramatic escarpments, which give the
To optimize the use of quality of the works, to expedite area its characteristics unique features.
available material resources construction and to optimize the
to minimize the costs to the use of natural resources & ensure The Contract includes the following
Client, to maximize the environmentally as well as socially components;
quality of the works, to sustainable construction, and
expedite construction and to To ensure that the road is
 Implement the environmental
commitments of the road
optimize the use of natural constructed within the Contract
resources & ensure Price and Time for Completion  General STD and HIV/AIDS
environmentally as well as allowed under the Contract or any Alleviation Campaign
socially sustainable agreed amendments thereto.
construction, and
Page 40 of 49
To ensure that the road is
constructed within the
Contract Price and Time for
Completion allowed under
the Contract or any agreed
amendments thereto.
Previously – DANA and Associates

plc Engineering Consultants in JV with
IDCON infrastructure development
Contract administration entity Ethiopian Road Authority Consultants plc. (until December 20th
2014)
Now – Transport Construction Design
Share Company
Contract duration 36 months+1 man month 24+12 Months 1096 Calendar days
Contract start date April 25, 2011 January 22, 2015 April 25, 2011
Intended completion date April 25, 2014 January 22, 2017 April 25, 2014
Contract status (ongoing (% progress) Ongoing –
Terminated Ongoing
68.02 % (until Dec., 2014)
completion date (Revised) April 25, 2014 NA June 03, 2015
CONTRACT IMPLEMENTATION &
Changes to contract duration with Reason 405 Cal. Days

No change No Change Disruption to rock excavation in the
park section
Amount of Liquidated Damage if applied No Liquidated Damage
NA NA
(Penalty for delay) applied
Contract price (Revised) ETB 12,541,092.13 ETB 12,690,599.17 including VAT
ETB 947,920,000.00 including VAT
COMPLETION
including VAT and local taxes

Changes to contract price with reason No Change to contract price
Total Price adjustment –
DNA No Change
ETB 177,840,198.24 excl. VAT
(until Dec., 2014)
Page 41 of 49
Scope at completion NA, as the Contract is not NA, as the Contract is not
DNA
completed
DISCLOSURE OF PROJECTINFORMATION completed
Changes to contract scope with reason The original road length (57.8 km) is
DNA No change
changed to 72.551 km.
Total payment effected (Certified) ETB 12,557,414.84 (until ETB 761,007,885.15 incl. VAT (until
DNA
PRELIMINARY PROJECT
Project owner Dec, 2014) Dec, 2014)

Ethiopian Road Authority
warranty type and description NA Debark – Buahit – Dilyibza NA Design and Build Road Project, Lot II:NA
INFORMATION
Project name Buahit – Dilyibza

Details of Termination if applied Road NA, as the Contract is not
Project. NA, as the Contract is not
Due to expiry of Contract
Sector, subsector terminated terminated
Transport, Road
Safety Measures (accident & death) No accident &Email:
death [email protected]
No accident & deathAddis Ababa/EthiopiaNo accident & death
Source for further information p.o.box:1770
Disputed issues & Award details District Office
No Disputed issues No Disputed issues No Disputed issues
Project Location Amhara National Regional State in North Gonder Zone particularly in Debark,
Janamora and Beyeda Woredas and begins at Buahit (eastern limit of Debark
Note:
NA – Note Applicable
DNA – Documents not Available
Page 42 of 49
Woreda).
Purpose Connect the areas to the east and west of the Ras Dashen Mountain.
Project description Construction Works:
 The works of the contract consists of Design and Construction of new road to DBST
standard.
 The work also includes construction of minor and major drainage structures.
Original Project Scope Construction Works:
Design and Construction of 57.8 km of Buahit – Dilyibza Road Project.
Project Components Supervision: To carry out the construction supervision and follow up of the full
engineering design and construction works of the project .
Construction Works: Design and Construction of new road.
Environmental impact  Landscape and Slope Stability,
 Soil Erosion/ Impairment,
 Impacts on Drainage and Water Resources,
 Air pollution,
 Noise Pollution,
 Impacts on Flora and fauna, etc.
land & settlement impact  Impacts on Land under Various Uses,
 Expropriation of Properties & Resettlement,
 Hazards from Blasting and Earthwork Activities, etc.
Estimated budget of the project with breakdown of components Supervision I: ETB 12,541,092.13 incl. of VAT and local taxes
Supervision II: ETB 12,690,599.17 including VAT and local taxes.
Construction Works: ETB 947,920,000.00 including VAT
Right of way – DNA
Price Adjustment:ETB 170,212,119.94 ( until Dec., 2014)
Funding sources The Government of Federal Democratic Republic of Ethiopia.
Project budget approval date DNA
Project start date (planned, actual) DNA
Planned/ Original duration for completing the whole project DNA
Planned/Original cost of the project DNA
Page 43 of 49
Cost of the project at completion NA, as the project is not completed
changes of project cost with reason DNA
Project completion date (Revised) DNA
PROJECT INFORMATION AT COMPLETION
Actualduration for completing the whole project NA, as the project is not completed
changes of project duration with reason DNA
Project Scope at completion NA, as the project is not completed
changes of project scope with reason DNA
Reference to documents for disclosure upon request 1. Bid Evaluation Reports – Consultancy services for the construction
(reactive disclosure) supervision,
2. Bid Evaluation Reports – Consultancy services for Design,
3. Post Qualification Evaluation Report – Construction works,
4. Bid Evaluation Reports – Construction works,
5. Contract Agreement – Construction works,
6. Contract Agreement – Construction supervision,
Note:
Page 44 of 49
11. Procurement Information for Design & Supervision Consulting Service
DISCLOSURE OF PROCUREMENT INFORMATION

PHASE
ITEMS OF DISCLOSURE DESIGN AND SUPERVISION

Consultancy Services of the review of EIA Studies, Detail Engineering Design;
Contract title Feasibility Study, Preparation of Resettlement Action Plan and Tender Document
Preparation and Construction Supervisionfor Buahit – Dilyibza Road Project.
Amhara National Regional State in North Gonder Zone particularly in Debark,
Location Janamora and Beyeda Woredas -begins at Buahit (eastern limit of Debark Woreda)
PROCUREMENT INFORMATION
and terminates at Dilyibza.

Procuring entity Ethiopian Road Authority
Email: [email protected] p.o.box:1770 Addis Ababa/Ethiopia
Source for further information
Central District Office
Date of procurement notice December 15 and 16, 2008
Floating period of the procurement notice 15 Cal. days
Media used for procurement notice Ethiopian Herald
Method of procurement Open bid

Type of Procurement DNA
Procurement procedure Request for EOI followed by Two stage Evaluation
Evaluation criteria QCBS

Page 45 of 49
Type of contract Lump sum &Time based

Type & Amount of bid security No information
Content of any complaint lodged No information
Engineer’s estimate NA
Date of bid opening May 28, 2009
Applied for EOI – DNA
Number of bidders: Participated, rejected and declined to Participated – 2 ( invited by ERA letter after EOI)
submit Rejected – 0, and
Awarded firm/contracting firm NA
Date of contract award NA
Award price/original contract price NA

Contract security type and amount NA
Date of contract signing NA
Contract scope NA
Description of contract & Contract components NA
Contract administration entity NA
Contract duration NA
Contract start date NA
Intended completion date NA
Note:
Page 46 of 49
12. Appendix 1: AP’s Response on PE’s Comment to the Report
Referred
Item
Section& Page Information Included in the Report PE’s (ERA’s) Comment AP’s Response
No.
No.
1 On page 7, sub- Alongside with PE’s effort however the In our opinion, there is no difficulty in acquiring CoST Ethiopia has tried its best on
topic 1.2.1.1 Disclosure and Assurance Process forthe any of the requested documents from the PE acquiring documents in different time by
Difficulty to following issuescouldn’t be analyzed and (Procuring Entity). communicating PE’s office through
Access Relevant included in this reportdue to some In relation to this, the PE’s (Procuring Entity’s) letters and verbally.
Documents inconveniency on acquiring the respective performance on the implementation of the The PE couldn’t also forward the
documents. project against the intended plan and the necessary documents along with their
construction supervision before or after comments as described in the report.
The PE’s performance on the
December, 2014 could easily be obtained from Therefore PE’s response to the issue
implementation of Contracts
the monthly reports submitted by the couldn’t be considered to incorporate in
under the Project in compliance
Employer’s Representative every month. the report.
with the intended Project Plan,
The PE’s performance on the

implementation of Contracts for
Supervision & Construction
Works after the period of Dec.,
2014.
2 Page 14, 2.2.2 Project budget approval date No comment
List of Project start date (planned, actual) Actual start date is April 25, 2011 April 25, 2011 is the start date of
unavailable construction works.Planned Project start
documents date refers to the intended time on or
after appraisal period.
Planned/ Original duration for completing Original duration is 3 years The period refers only to construction
the whole project works.
Planned/Original cost of the overall project ETB 947,920,000.00 The price refers only to construction
works.
Page 47 of 49
Latest Annual, Quarterly or Monthly Latest Annual, Quarterly or Monthly Progress CoST Ethiopia has tried its best on
Progress Reports Reports are available and can be reviewed any acquiring documents in different time by
time. communicating PE’s office through
letters and verbally.
The PE couldn’t also forward the
necessary documents along with their
comments.
Total Cost for Right of way No comment
Approved Payment Certificates for both The information is available at any time CoST Ethiopia has tried its best on
Supervision Service Contracts (latest) acquiring documents in different time by
Instruction Notices forwarded to Notice/Instructionto Commence the communicating PE’s office through
Construction supervision Firms to Construction supervision Firms is available. letters and verbally.
Commence their Contracts The PE couldn’t also forward the
3 On the Table Changes to Contract Price with reason: Document is available for total payment necessary documents along with their
DNA effected (certified) comments.
Page 48 of 49

1168 Assurance Report Final Buahit Dilyibza Road Project

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Construction Sector Transparency Initiative – Ethiopia (CoST – Ethiopia)

Assurance Report on Disclosed Project and Contract

1. Executive Summary ............................................................................................................................. 6

5.1.1 Overview of the Procurement Process ................................................................................... 18

8.1.2.2 Accuracy of the Disclosed Procurement Information ........................................................ 32

List of Acronyms / Abbreviations

1.1 Brief Descriptions of Project &Contracts included on the Report

1.2 Summary of Findings

1.2.1 Handling of Documents& Records

1.2.2 Fairness of Procurement Rules on Participation

1.2.2.2 Efficiency of Procurement Process

Signing date of Contract = April 5, 2011 (05/04/2011),

1.2.3 Issues related to Contract Scope

1.2.4 Compliance with Contract Requirements

1.2.4.2 Insurance against the Risks and for the Coverages:

2.1 Main Objectives of the Assignment

2.2 Challenges of the Assurance Process

2.2.1 Lists of Documents Collected Lately

3. Bid Document for the2nd Design & Supervision Service,

2.2.2 Lists of Unavailable Documents

3. Disclosure of Project Information

3.1 Project Overview

3.2 Scope of the Project

3.3 Socio Economic Benefits of the Project

3.3.1 Socio-Economic Benefits during Operation

3.3.2 Positive Impacts on Tourism

3.3.3 Creation of Job Opportunities during Construction

3.4 Undesired Impacts of the Project

3.5 Source of Funding and Project Cost

3.6 Project Duration

4. General Overviews on Procurement & Contract Information

5. Disclosure of the Design & Supervision Service Procurement Information

5.1 Disclosure of Procurement Information

5.1.1 Overview of the Procurement Process

5.1.1 Verification of the Disclosed Procurement Information

5.1.1.2 Accuracy of the Disclosed Procurement Information

5.1.2 Analysis of the Disclosed Procurement Information

6. Disclosure of the 1st Construction Supervision Procurement & Contract Information

6.1 Disclosure of Procurement Information

6.1.1 Overview of the Procurement Process

Table 6.2: List of firms who submitted proposals

6.1.2 Verification of the Disclosed Procurement Information

4. Expression of Interest (EOI) Assessment Report.

6.1.2.2 Accuracy of the Disclosed Procurement Information

6.1.3 Analysis of the Disclosed Procurement Information

Closing date of Bid submission = February 25, 2010 (25/02/2010),

2) Submission Problem of Bid Offer:

6.2 Disclosure of Contract Information

6.2.1 Overview of the Contract

6.2.2 Verification of the Disclosed Contract Information

6.2.2.1 Completeness of the Disclosed Contract Information

6.2.2.2 Accuracy of the Disclosed Contract Information

7. Disclosure of the 2nd Construction Supervision Procurement & Contract Information

7.1 Disclosure of Procurement Information

7.1.1 Overview of the Procurement Process

7.1.2 Verification of the Disclosed Procurement Information

7.1.3 Analysis of the Disclosed Procurement Information

7.2 Disclosure of Contract Information

7.2.1 Overview of the Contract

7.2.2 Verification of the Disclosed Contract Information