rfp libyan government

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THE GREAT SOCIALIST PEOPLE'S L IBYAN ARAB JAMAHIRIYA

GENERAL PEOPLES COMMITTEE NATIONAL ECONOMIC DEVELOPMENT BOARD

Request for Proposal from Consultancy Services

For the Strategic Management of Libya’s Development Program

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Contents

1. Introduction ....................................................................................................................................... 3

2. An overview of the Development Program starting 2008 ................................................................ 7

3. Scope of Work ................................................................................................................................. 10

3.1 Design an Integrated Total Quality Management System (ITQMS) for the Development Program: .......................................................................................................................................... 10

3.2 Develop ‘What if’ Scenarios & Contingency Plans (Sensitivity Model): .............................. 11

3.3 Determine Priority Projects ..................................................................................................... 13

3.4 Determine Contract Commitment Timeline ............................................................................ 17

3.5 Evaluation of Current Contracting Process ............................................................................. 18

3.6 Evaluation of the Process of Government Payments to Contractors ....................................... 19

3.7 Per Unit Cost Evaluation ......................................................................................................... 20

3.8 Monitoring & Analysis of Technical, Socioeconomic & Financial Parameters ...................... 21

3.9 Progress & Evaluation Reports ................................................................................................ 23

3.10 Capacity Building ................................................................................................................... 24

3.11 Operation & Maintenance Systems ........................................................................................ 25

4. Bill of Services .................................................................................................................................. 30

5. Terms of Contract ............................................................................................................................ 34

6. General Conditions .......................................................................................................................... 34

7. Annexe ............................................................................................................................................. 37

7.1 Presentation summarizing the main background and features of the Development Program

(English) ........................................................................................................................................... 37

7.2 Presentation summarizing the main background and features of the Development Program

(Arabic) ............................................................................................................................................ 37

7.3 National Consultant Bureau (NCB) profile and proposed services to be delivered (English) . 37

7.4 Funds allocation criteria approved by the National Planning Council (NPC) .......................... 37

7.5 Proposed Contract Form (English) .......................................................................................... 37

7.6 Proposed Contract Form (Arabic) ........................................................................................... 37

7.7 Libyan Contract Regulation (English) ...................................................................................... 37

7.8 Libyan Contract Regulation (Arabic) ....................................................................................... 37

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1. Introduction

1.1 Libya lies on the northern coast of the African continent and the Mediterranean Sea,

with a length of 1770 Km and an area of 1,660,000 square kilometers. Among its 6 millions

inhabitants, the proportion of ages between zero and 14 years was 33.4%, between 14 and 64

years of 62.4% while the national life expectancy average is 76.8. The GDP for 2006 was 62

billion dollars while the growth rate in the same year was 6.8 %.

1.2 The proportion of the contribution of economic sectors in the GDP was 69% in mining

(oil), 20% in services, 4 % in industry, 3.8 in construction, 2.0% in agriculture, and 1.2 in

electricity in 2006. The labor force is estimated at 1.748 million, of whom 59% (approx) are in

the service sector, 23% in industry.

1.3 Since the revolution of September 1969 Libya has seen accelerated advancements and

developments in the various aspects of economic life which led to achieve economic rates

referred to above.

1.4 As a direct consequence of the revolution the economic structure changed entirely and

by sectors. Libya has come a long way from a grazing agricultural economy which earned its

inhabitants a rudimentary thirty dollars “$30” in GDP per capita in the year 1951 and about a

hundred dollars "$ 100" in the year 1960 the GDP per capita is today around eleven thousand

dollars “$11000”. From a time when most of its inhabitants lived in shacks and crumbling

houses that lack the minimum and most basic necessities of life, Libyans now enjoy adequate

housing facilities and basic services. The revolution has had, since its inception, a key objective

to increase the income level of the citizen and the material well-being of the whole society,

paying special attention to social justice in spatial development, the distribution of wealth, the

nurturing of educated generations covered by free health care. The establishment of the safety

net was enacted by social security legislation and the establishment of funds to finance it.

1.5 There have been a lot of structural and functional changes of the Libyan economy over

the past three decades through the investment of oil funds in local projects in various sectors.

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These investments grew after the correction in oil prices at the beginning of the seventies of

the last century, where those rates were increased from “$2.3” per barrel in 1969 to twenty-

five dollars “$25” per barrel in the year 1979. The resultant increase in the value of oil revenues

from in 1980 saw very high public expenditure.

1.6 However, the rate of investment spending remained the same after the year 1980 due

to declining oil prices, as prices decreased at the late eighties of the last century. The

consequence of this decline in oil revenues was also a sharp decline in the volume of public

expenditure with grave implications on the national development projects being implemented.

These were stopped, cancelled or extended in their implementation period which reflected

negatively on the average per capita income as well as on the standard of living.

1.7 During the nineties oil prices continued to fluctuate and declined, reaching $8 per barrel

with a combination of economic sanctions on Libya the result was dramatic stagnation in

economic development. Since 2002 and beyond saw a dramatic uphill rise of oil prices and the

Libyan economy was able to rejuvenate, investing new and significant sums of money in various

areas of economic and social development.

1.8 The efforts that have been made to increase the level of per capita income and level of

services provided free of charge in the areas of education and health, led to a decrease in the

level of poverty "by Libyan standards". After while the percentage of the population below the

poverty line was 36% in the year 1969 this has declined to about 11% in year 2006. Legislation

issued in this period, preferred the total subsidy of many food commodities, fuel and electricity

as well as free services in education and health. As a result, these legislations and policies

reduced disparities in incomes. The most important of these policies:

- Creation of new employment opportunities.

- Public Spending.

- Provide a safety net for the needy and disabled and retired.

- Control prices and stabilize inflation.

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1.9 The Great Man Made River project (GMMR) served to overcome the shortage of water

sources along the river (approx 4,000 kilometers) to feed all cities and villages deprived of

natural water sources. While 99% of Libyans benefit from electrical power

1.10 Referring to international reports, Libya has a relatively high ranking in human

development indicators due to the efforts mentioned above in the areas of education, health

and building public facilities and infrastructure. According to the Human Development Report

2007/2008 which published by UNDP, Libya is ranked 56 out of a total 177 countries, ranked 4th

in Arabic countries and 1st in Africa.

1.11 Although positive results were achieved by the development programs in the past

decades, many outputs have fallen short on the degree of quality due to a host of reasons;

bottlenecks and constraints in financial, technical, administrative areas, annual fluctuation of oil

revenues, poor management and regulatory mechanisms and low capacity in the area of

project planning and management.

1.12 The development program of 2008 and beyond should be established, financed and

managed in accordance with effective practices and methodologies that take into account the

local, regional and international context of economic competitiveness for Libya in the 21st

century. (See annex A and B which summarises the main background and features of the

Development Program)

1.13 The expected volume of public spending for the next five years period spanning is

estimated at 150 billion LYD (excluding investments outside the general budget, such as foreign

direct investment in oil and gas sector, which spend under the partnership agreement and

shared profits and the amounts expected from direct foreign and local investments in other

economic sector).

1.14 The number of projects expected to be implemented during this period is approximately

twelve thousand projects. This development program is the largest ever in the history of the

country.

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1.15 This massive program comes in response to favorable new circumstances. The aims of

this program are; to establish long term sustainable development, that does not cause

economic or social imbalances in the country; to achieve a high and real rate of growth in all

economic sectors; to boost service productivity; to create new opportunities for employment

for a growing population of youth; to increase the real income of the average citizen and to

build competitive diversified economy not dependent on oil revenues; an economy with the

capacity of financing itself through returns and revenues to both public and private sectors.

1.16 Establishing sound economic management of this program will eventually lead to the

achievement of sustainable economic and social development.

1.17 The development program will be implemented by the sectors and the strategic

management will be carried by the General People's Committee, while the National Economic

Development Board (NEDB, a technical arm of the GPC) will be responsible for the technical

details of the strategic management, administration and supervision in collaboration with the

awarded international consultant.

1.18 Given its size and importance, this program requires a comprehensive and integrated

approach to manage its activities from the macroeconomic level (across-sectors) through to the

micro-economic level (within sectors).

1.19 The National Consultant Bureau (NCB) is a general public consultancy office which

benefits from good experience in the area of project management, and will collaborate with the

international consultant who makes a successful bid. These consultants, together with the

NEDB will be responsible for the detailed technical aspects to feed the management of the

development program in accordance with a contractual agreement between the NEDB and

both consultants. (See Annex (C) which includes an overview about the NCB and services

provided by them).

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2. An overview of the Development Program starting 2008

2.1 Libyan economy is relatively a small economy. It depends mainly on oil exports. During

the last 38 years the economy went through several dramatic changes none of which

lasted for a long time. The economy shifted from the dominance of the private sector in

the early 70’s to varying degrees of state intervention and controls. After the year 2000,

economic policy shifted toward competitive market economy.

2.2 However, the main characteristics of the Libyan economy in the past are:

a. The main source of income is oil exports.

b. Government investment constitutes the major part of total investments.

c. Economic policy was designed to substitute imports and achieve goals of self-

sufficiency.

d. Government investment varies directly with oil revenues. As a matter of fact

government investment development programs especially in infrastructure,

infrastructure maintenance, housing & utilities was very small after 1986 up to the late

90’s because of lower oil prices and the economic sanctions imposed in early 90’s.

2.3 Lately world nominal oil prices increased and so did Libya oil revenues. As a result the

Libyan government is triggering a new massive national development program 2008-

2012. The program has been approved by the National Planning Council of. It is

expected that the program will form the basis of economic development and

restructuring for the next ten years. The development program hinges on the following:

a. An ambitious public investment program that aims at rehabilitation and

expansion of infrastructure, social capital, and public services capital; and the

development of the oil sector.

b. A restructuring program that aims at development of an economic

environment conductive to growth and integration with the global economy.

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c. Encouraging and developing a level field for the realization of competitive and

diversified economy in the medium and long runs.

2.4 Recent changes usher the beginning of a transition period (could last 4 to 8 years) that

aims at the transformation of highly regulated and constrained mode of organization

into competitive market economy. This type of transformation depends mainly on

private initiatives, effective governance with civic engagement and efficient public

sector, with stronger inter-relationships and integration with the outside world. The

main spearhead of changes during the last six years has been reflected in the following:

a. A broad consensus to adopt less restrictive policies and forms in economic

activity. The main tenets of this consensus are:

i. Enhancing the role and initiatives of the private sector (noting its duty to

meet its social obligations).

ii. Reducing the role of the public sector in production, on one hand, while

enhancing the effectiveness of public policy in the realm of social and

infrastructure domains (including wide ranging investment in these

domains), on the other.

iii. Adopt more incentive-based and sustainable strategy of diversification.

iv. Develop reserves and production capacity in the oil sector.

v. Adopt active and comprehensive public role in human resource

development.

b. The practical steps needed to implement this consensus are enormous and far-

reaching. They concern policies, laws, regulations, practices as well as

institutions. Changes have started in the past but are gaining momentum now.

2.5 A large amount of oil revenues is expected to be allocated to the development program

(2008-2012). The program covers development of infrastructure, industry, agriculture,

human resources and services sector. The size of the expected investment as a

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percentage of gross national product is expected to be high. Such a massive investment

program will have both positive and negative economic and social impacts. The

magnitude of these impacts depends on several factors chief among them changes in

nominal world oil prices and local absorptive capacity. The later is determined by other

factors such as:

1. Institutional framework, laws and regulations and their effectiveness.

2. Transparency, lack of corruption and effectiveness of government economic

policies.

3. Efficiency in the public sector (Government organizations).

4. Availability and condition of suitable Infrastructure (such as roads, electric

power, phones).

5. Availability and quality of services (such as banking, insurance, transportation).

6. Availability of skilled labor.

7. Social and cultural considerations.

8. Availability and reliability of data.

2.6 However, if the proposed development program is not supported by relevant social and

environmental policies and focused measures, they may result in social consequences

that lead to increasing income disparities, rising poverty, lower standard of education

and health and degradation of the environment. In order to avoid these possible

outcomes and at the same time contribute to the realization of the main social goals,

concerted actions and policies are required on the side of the government and other

organizations of civil society.

2.7 In addition, the behavior of oil prices in the world market is uncertain. If oil prices

decrease this will affect directly government revenues and in turn its investment. This

may put the whole program on hold or slow it down dramatically.

2.8 Thus, there is a great need to develop an integrated management system of the actual

implementation to ensure achievement of the program goals and objectives through

appropriate activities, monitoring and evaluation. The development program will be

managed on three levels:

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1. Macro level which refers to management of the development program at the

top executive government level.

2. Sub-macro level which refers to management on the sectoral level.

3. Micro level which refers to management on the single project level.

3. Scope of Work

In order to manage the development program efficiently, an integrated management

approach should be adopted. Integrated management refers to a single process or structure

that combines macro-economic management, public expenditure management, financial

resource management, procurement and contracting management and project management to

meet the development program goals and objectives. The consultant is expected to carry out

several activities, to each activity attached an outputs (deliverables) and outcomes (objectives).

More specifically the consultant is expected to:

3.1 Design an Integrated Total Quality Management System (ITQMS) for the Development Program:

3.1.1 Assess the existing organizational structure and processes of managing

development programs.

3.1.2 Identify bottlenecks and constraints in the existing management system of

the development program.

3.1.3 Design an effective integrated total quality management system on the

three levels: macro, sub-macro and micro.

3.1.4 Prepare all relevant requirements including the definition of processes and

their interactions, responsibilities, manuals, procedures, codes, work

instructions, forms, documentations and management information

systems.

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3.1.5 Implement the developed management system at the macro level in

coordination with NEDB.

3.1.6 Train related personnel to operate the system on the three levels.

3.1.7 Prepare an automated management system to ensure standard procedures

and reporting format at different levels.

3.1.8 Periodical review and validation of the system.

The consultant is expected to deliver an Integrated Quality Management System macro

management system (manual and automated).

The outcome (objective) of the activity is optimum management of the development program to

achieve its strategic goals.

3.2 Develop ‘What if’ Scenarios & Contingency Plans (Sensitivity Model):

Two types of expected constraints may affect the development program: funding as

determined by world oil prices and absorptive capacity. The change in parameters related to

funding and absorptive capacity have a direct impact on things such as production and

productivity, government expenditure, inflation rate, unemployment levels, and poverty.

Accordingly, contingency plans should be prepared, optimum annual investment and public

expenditure should be allocated on the basis of alternative scenarios. These scenarios should

be developed depending on possible and expected (most likely) changes in world oil prices and

other parameters such as inflation rate, unemployment levels and poverty. The scenarios

should be developed for each parameter alone and in combination with the other correlated

parameters.

It should be noticed that exceeding the economy absorptive capacity will lead to high

levels of inflation, higher unemployment levels and these will reduce standard of living which

will lead, in turn, to a wider poverty. If Libyan labor participation in the development program

projects is limited then it is well expected that poverty may indeed widen.

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The consultant is expected to:

3.2.1 Define all parameters (most likely) expected to change and affect the levels of

inflation, employment, production, productivity and the like.

3.2.2 Establish the most likely scenarios from all possible scenarios. This will narrow

down the number of future trajectories.

3.2.3 Perform risk analysis in order to prepare what if scenarios for each parameter

alone and in combination with the other correlated parameters.

3.2.4 Develop a technique to determine the critical path and optimum expenditure for

each defined scenario.

3.2.5 Develop contingency plans for each scenario.

3.2.6 Determine the annual investment levels that will help in sustaining development

in the long run.

3.2.7 Establish upper limits on total national investment (public and private) during

the development program period (considering the limits set by the absorptive

capacity).

3.2.8 Periodical review and validation of the scenarios and related contingency plans.

The consultant is expected to deliver contingency plans, optimum annual investment,

and public expenditure at both macro and sub-macro levels.

The outcome is proactive risk mitigation for the Development Programme.

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3.3 Determine Priority Projects

The consultant is expected to develop a technique and define criteria that can be used

to determine priorities among projects in each sector and among sectors in the economy. This

may require setting up several workshops with the relevant sectors to produce a system to rank

the projects.

What follows is an example of such a technique for illustrative purposes.

Sector

information from

government

departments

Assessment of

sectors against

criteria Sector weighing

Project score

Project

information from

feasibility studies

for each project

Assessment of

projects

against criteria

Project weighing

Master list

of priority

project

Funds review

3 monthly

reviews

Project progress

reporting cost &

time

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Sector Weighing

Sector 17 Sector X Sector 2 Sector 1 Sector Criteria

s% Human development/ knowledge

transfer

Y% Employment creation –short term

Z% Employment creation – long term

A% Infrastructure improvement

B% Use of resources

C% Sustainability

D% Other

Total % Sector weighting

Project Weighing

Sector 17 Sector X Sector 2 Sector 1 Project Criteria

x% Achievement of sector polices & target

y% Overall benefit to population

z% Overall economic impact

a% Overall social impact

b% Project compliance with master plan

Total % Project Weighing

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Overall Project Score

Overall ranking Overall

Weighing

Project

Weighing

Sector Weighing Sector Project

A Project 1

A Project 2

B Project 3

B Project 4

C Project 5

Calculation of Amounts Available for New Projects

Annual budget Project Criteria

100 Annual budget

10 Outstanding payments – completed projects

50 Committed payments- ongoing projects

-----

40 Net budget available for new projects

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Allocation of Budget Available to New Projects

Cumulative total Project total New projects as ranked

New project priority 1







Once the technique is developed and tested, it can be applied for each sector and for the

economy as a whole.

The tasks to be performed are:

3.3.1 Prioritize projects that have already been contracted for, and suggest remedies

and recommendation to deal with projects that do not meet priority criteria.

3.3.2 Prioritize proposed new projects.

3.3.3 Periodical review and validation of the priorities.

In general prioritization should be based on minimum costing, highest rate of return, urgent

and complementary needs. Annex (b) shows detailed criteria that could be used. The consultant

is expected to provide:

- A technique to prioritize projects.

- Priorities of existing contracted projects and recommendations for remedies.

- Priorities of new projects.

The expected outcome is proper allocation of resources.

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3.4 Determine Contract Commitment Timeline

Given the list of prioritized projects a time line showing the month of the year when a given

project should be contracted for and implemented considering:

3.4.1 Balanced spatial distribution of projects.

3.4.2 Fair distribution of projects between sectors on the bases of well defined

criteria.

3.4.3 Meet both central bank and public expenditure constraints.

3.4.4 Optimum annual investment program capacity defined from what if

scenarios with due consideration of absorptive capacity estimates.

In addition, scheduling new project contracts for each sector and financier should consider:

3.4.5 Financial commitments on both macro and sub-macro levels, and cash

flows needed for ongoing projects in coming years.

3.4.6 Annual financial commitments should not exceed those allocated in the

development budget. It should not also exceed the upper limits specified

by central bank of Libya.

3.4.7 The contract commitment time line should be periodically reviewed and

validated.

The expected output is project schedule entry dates.

The outcome is a rationalized public expenditure framework.

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3.5 Evaluation of Current Contracting Process

The consultant is expected to evaluate the Libyan current contracting legislation,

processes, procedures and forms; as well as specify and recommend improvements taking in

consideration: process speed, efficiency, effectiveness and transparency. At least the following

tasks should be included:

3.5.1- Evaluation of contracting procedures.

3.5.2- Evaluation of terms of contracts.

3.5.3- Evaluation of contracting regulations and laws.

3.5.4- Recommend improvements.

3.5.5- Review and validate the recommendations periodically.

The expected outputs are specific recommendations to improve the current contracting

legislations and processes.

The outcome is a speedy, efficient, effective and transparent contracting system.

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3.6 Evaluation of the Process of Government Payments to Contractors

The following tasks should be included:

3.10.1 Evaluation of payment procedures and forms.

3.10.2 Evaluation of payment processes.

3.10.3 Evaluation of payment regulations.

3.10.4 Recommend improvements.

3.10.5 Review and validate the recommendations periodically.

The expected output is specific recommendations to improve the current payment

legislations and processes.

The outcome is a speedy, efficient, effective and transparent procedure of the government

payments to contractors.

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3.7 Per Unit Cost Evaluation

The consultant is expected to periodically estimate unit cost of capital invested in each

economic activity specified in the contracts in each sector ( such as cost of class room, hospital

bed, mega watt of electricity, km of roads, m3/day of treated wastewater). These unit costs are

then compared with unit costs in countries with similar initial conditions and endowments. If

the estimated per unit cost in Libya is significantly different, recommendations to remedy the

problem are expected. At least the following tasks should be performed:

3.7.1- Determine unit costs of capital invested in each economic activity and compare it

with that in countries with similar conditions.

3.7.2- Recommend necessary measures to remedy the situation when needed.

3.7.3- Review and validate the recommendations periodically.

The output expected is unit cost indices by sector.

The outcome is a per unit cost in Libya to a comparable level with similar countries.

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3.8 Monitoring & Analysis of Technical, Socioeconomic & Financial Parameters

The integrated total quality management system should be able to monitor a set

of technical, financial and socioeconomic parameters. These parameters may include

(but not limited to) the following:

3.8.1 Technical parameters

o Number of current and future projects in each sector

o Spatial distribution of projects.

o Required cash flow on both macro and sub-macro levels.

o Percentage of Libyan firms (contractors and service providers) in the

implementation of the development program.

o Total Libyan work force employed.

o Planned and actual project progress statues.

o Government payments made to contractors versus amounts allocated in the

budget on macro and sub-macro levels.

o Quantity and value of Local and imported construction material (available and

required)

o Quantity of Local and imported other materials.

3.8.2 Financial & Socioeconomic Parameters

o Poverty levels.

o Inflation rate.

o Economic growth rate.

o Unemployment levels.

o Productivity.

o Oil prices.

o Balance of payment.

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o Total exports.

o Growth in GDP (oil and non oil sectors)

o GDP Gross National Product (oil and non oil).

o GDP per capita.

o Exchange rate.

o Gini Coefficient.

o Interest rate.

o The poorest and richest quintile.

The management system is expected to utilize the required information and monitor

the relevant parameters. The quality of information has to be verified by evaluating

procedures used in collecting data, sampling procedures and surveys.

Recommendations of how to improve the quality and reliability of information is

expected.

The expected output is an efficient monitoring system for socioeconomic, financial and

technical parameters.

The outcome is a controlled and sound management system with early alarm indicators.

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3.9 Progress & Evaluation Reports

Two types of reports are expected:

3.9.1 Monthly progress reports that include technical, financial, and socioeconomic

parameters. Any difficulties and problems associated with the development program

implementation should be reported.

3.9.2 Quarterly progress reports that include technical, financial and

socioeconomic analysis and recommendations of alternatives that could be pursued.

The expected output is a robust reporting system.

The outcomes are reliable informative reports to enhance decision making to achieve the

strategic goals of the development program.

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3.10 Capacity Building

The consultant is expected to:

3.10.1 Assess raining needs at the macro level (NEDB). Implement training program for

NEDB personnel involved in the program management.

3.10.2 Provide guidelines for Training Need Assessment at sub-macro and micro levels.

3.10.3 Prepare and implement training programs for the sub-macro and micro levels.

The expected outputs are:

- Training needs assessment for NEDB personnel.

- Provide guidelines for training needs assessment for sub-macro and micro

levels.

- Develop a training plan and implement it on the three levels (macro, sub-macro

and micro).

The outcomes are skilled personnel and continuous training schedules to achieve sound macro

management system & knowledge transfer.

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3.11 Operation & Maintenance Systems

3.11.1 Assessment of current operation and maintenance management systems.

3.11.2 Recommend a system that will lead to efficient operation and maintenance

management system(s) to ensure sustainability and high return on investment.

The output is a reliable system to guarantee efficient operations and maintenance

management system(s).

The outcome is effective sustainable development.

The following table contains summary of activities to be under taken by the consultant,

outputs, outcomes and delivery dates. The delivery dates should not be later than the date in

the last column of the table.

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o Activities

Outputs Outcomes Pre-

Activity/ies

Followed

Activity/ies

Delivery dates

1.

Design an Integrated Total Quality Management System

(ITQMS) for the Development Program (at the three main

levels: Macro, Sub Macro and Micro)

1.1 Assessing of the current system (structure & processes)

for managing development programs.

1.2 Identifying bottlenecks & constraints

1.3 Designing effective integrated TQMS on the three

levels: macro, sub-macro & micro.

1.4 Formalising codes & definitions, responsibilities,

processes, procedures, forms, manuals & MIS.

1.5 Implementing the system at the macro level with EDB

1.6 Training related personnel to operate this system at

the three levels (see item no. 10)

1.7 Developing automated MIS to ensure standard

procedures & reporting format at different levels.

1.8 Reviewing & validating the system periodically

-A macro management system (manual and

automated)

Including all required documents

optimum management

of the development

program to achieve its

strategic goals

0 8, 9 and 10

Activities from

1.1 to 1.5

31.7.2008

Activity 1.6

continues

(periodically)

2.

2.1 What If Scenarios & a contingency plan:

2.1.1 Define expected scenarios.

2.1.2 Narrow down likely outcomes.

2.1.3 Perform Risk & Sensitivity analysis for individual &

correlated parameters.

2.1.4 Develop technique to determine critical path &

optimum expenditure scenarios.


2.1.6 Determine annual investment levels

2.1.7 Establish upper limits on total national investment.

- Contingency plans

- Optimum annual investment and public

expenditure at macro and sub-macro levels

Proactive risk mitigation 0 4 and 9

Activities 2.1

and 2.2

31.7.2008

Activity 2.3

continues

(periodically)

Schedule of Activities

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2.1.8 Periodical reviewing and validation of the

contingency plans.

3.

Determine Priority Projects:

3.1 Develop a technique & define criteria for prioratising

projects.

3.2 Prioratise contracted projects & suggest remedies for

projects that do not meet priority criteria.

3.3 Priorities required by proposed projects

3.4 Periodical review and validation of the priorities

schedule.

-A technique to prioritize projects

- Evaluation reports of existing projects

regarding prioritize and recommendation for

remedies.

- Prioritize the new projects

Proper allocation of

resources 0 4 and 9

Activities from

3.1to 3.3

31.7.2008

Activity 3.4

continues

(periodically)

4.

Develop a contract commitment time-line/ schedule

accounting for:

4.1 Balanced spatial distribution of projects.

4.2 Fair distribution of projects between sectors based on

criteria.

4.3 Monetary & fiscal constraints.

4.4 Optimum annual investment capacity from what if

scenarios.

4.5 Financial commitments on both macro & sub-macro

levels and required cash flows.

4.6 Development budget ceilings & allocation.

- Projects schedule entry dates Rationalized public

expenditure frame work 2 and 3 9

Activity 4.1

30.9.2008

Activity 4.2

Continues

(periodically

5.

Evaluation of current contracting process:

5.1- Evaluating (with the aim to standardize, simplify and

streamline) 1) Contracting Procedures 2) Terms of

contracts and 3) Contracting legal framework

5.2 recommended improvements required by criteria for

optimum running of the development programme 2008.

5.3 Periodical review and validation of recommendations.

- Specific recommendations for amendments

A speedy, Efficient,

effective and

transparent contracting

system

0 9

Activities 5.1

and 5.2

31.7.2008

Activity 5.3

continues

(periodically

6. Evaluation of the process of Government payments to

contractors: - Specific recommendations for amendments

A speedy, Efficient,

effective and 0 9

Activities 6.1

and 6.2

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6.1 Evaluation of payment procedures & forms.

6.2 Evaluation of payment processes.

6.3 Evaluation of payment regulations.

6.2 Recommend improvements.


transparent payment

procedures

31.7.2008

Activity 6.3

continues

(periodically

7.

Pricing Evaluation:

7.1 Determining unit costs of capital invested in each

economic activity comparable to similar countries .

7.2 Recommend necessary measures to remedy uncovered

issues.

7.3 Periodical review and validation of recommendations

- Develop unit price indices by sector

To bring Libya to the

level of comparable

countries

0 9

Activities 7.1

and 7.2

31.7.2008

Activity 7.3

continues

(periodically

8.

Monitoring and analysis of socioeconomic, financial and

technical parameters:

8.1 Design and implement Monitoring system including

defining technical, financial and socio/economic

parameters

8.2 Evaluating The Information Authority data to insure its

adequacy and validity. This shall include but not limited

to: standers used in the process of data collection and

production, sampling, kind of information and sample

Intervals.

8.3 Using a/m assured information for the designed system

A n efficient monitoring system at macro level

for Socio/ Economic, financial and technical

Parameters

controlled sound system

with early alarm

indicators

1 and 2 9

Starting

deliverables

from

31.7.2008

This activity

will be

continues

9.

Provide periodic progress and evaluation reports:

9.1 Monthly Progress Reports of the development program

including: technical, financial, and social/economical.

9.2 Quarterly evaluation Reports include parameters,

monitoring, analyzing and recommending.

Robust reporting system

Provide a reliable

informative reports to

enhance decision

making to achieve the

strategic goal of the

development program

1 - (Periodical)

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Note: The deliverables of all activities will be reviewed and improved periodically

10.

Capacity Building (Training):

10.1 Training need assessment for the macro level, design

and implement training plan for EDB

10.2 Providing guidelines for determination of training

needs assessment for sub-macro and micro levels

10.3 Preparing and implementing of training program for

sub-macro and micro levels

- training needs assessment report for EDB

personnel

- training plan and implementation for EDB,

sub-macro and micro level

- Guidelines for training needs determination

for sub-macro and micro levels

-Skilled personnel to

achieve sound macro

management system

- Knowledge transfer

1 - Continues

11.

Operation and Maintenance Systems:

11.1 Assessment of current operating and maintenance

systems of different sectors

11.2 Design systems to optimize the asses operating of

each situation to achieve a sustainable development

and value for money for each sector.

Specific operation and maintenance system

designed for each of the particular sector

effectively sustained

program 0 9 30.6.2009

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4. Bill of Services

The following bill of services contains the main and sub-activities, quotation should be filled out in USA Dollars.

# Main Activities Sub Activity Cost of sub-

activity

Cost of main

activity Remarks

0 Detailed methodology Detailed methodology

1

Design an Integrated Total

Quality Management System

(ITQMS) for the Development

Program (at the three main

levels: Macro, Sub Macro and

Micro)

1.1 Assessing of the current system (structure & processes) for managing

development programs.

1.2 Identifying bottlenecks & constraints

1.3 Designing effective integrated TQMS on the three levels: macro, sub-

macro & micro.

1.4 Formalising codes & definitions, responsibilities, processes,

procedures, forms, manuals & MIS.

1.5 Implementing the system at the macro level with EDB

1.6 Training related personnel to operate this system at the three levels

(see item no. 10)

1.7 Developing automated MIS to ensure standard procedures & reporting

format at different levels.

1.8 Reviewing & validating the system periodically

2 What If Scenarios & a

contingency plan:

2.1.1 Define expected scenarios.

2.1.2 Narrow down likely outcomes.

2.1.3 Perform Risk & Sensitivity analysis for individual & correlated

parameters.

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2.1.4 Develop technique to determine critical path & optimum

expenditure scenarios.


2.1.6 Determine annual investment levels

2.1.7 Establish upper limits on total national investment.

2.1.8 Periodical reviewing and validation of the contingency plans.

3 Determine Priority Projects:

3.1 Develop a technique & define criteria for prioratising projects.

3.2 Prioratise contracted projects & suggest remedies for projects that do

not meet priority criteria.

3.3 Priorities required by proposed projects

3.4 Periodical review and validation of the priorities schedule.

4

Develop a contract commitment

time-line/ schedule accounting

for:

4.1 Balanced spatial distribution of projects.

4.2 Fair distribution of projects between sectors based on criteria.

4.3 Monetary & fiscal constraints.

4.4 Optimum annual investment capacity from what if scenarios.

4.5 Financial commitments on both macro & sub-macro levels and

required cash flows.

4.6 Development budget ceilings & allocation.

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5 Evaluation of current

contracting process:

5.1- Evaluating (with the aim to standardize, simplify and streamline) 1)

Contracting Procedures 2) Terms of contracts and 3) Contracting legal

framework

5.2 recommended improvements required by criteria for optimum

running of the development programme 2008.


6

Evaluation of the process of

Government payments to

contractors:


6.2 Evaluation of payment processes.

6.3 Evaluation of payment regulations.

6.2 Recommend improvements.



7

Pricing Evaluation

7.1 Determining unit costs of capital invested in each economic activity

comparable to similar countries.

7.2 Recommend necessary measures to remedy uncovered issues.

7.3 Periodical review and validation of recommendations

8

Monitoring and analysis of

Socio/ Economic, financial

and technical Parameters

8.1 Designing and implement Monitoring system including defining

technical and socio/economic parameters

8.2 Evaluating The Information Authority data to insure its adequacy

and validity. This shall include but not limited to: standers used in the

process of data collection and production, sampling, kind of

information and

of 37

8.3 Using a/m assured information for the designed system

9

Progress and Evaluation

Reports

9.1 Monthly Progress Reports of the development program including:

technical, financial, and social/economical.

9.2 Quarterly evaluation Reports include parameters, monitoring,

analyzing and recommending.

10

Capacity Building

(Training)

10.1 Training need assessment for the macro level, design and implement

training plan for EDB

10.2 Providing guidelines for determination of training needs assessment

for sub-macro and micro levels

11

Operation and

Maintenance Systems

11.1 Assessment of current operating and maintenance systems of

different sectors

11.2 Design systems to optimize the asses operating of each situation

to achieve a sustainable development and value for money for each

sector.

Total

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5. Terms of Contract

Contract to be signed in Arabic, the form of translated contract is attached (see annex D) with the

Arabic version (see annex E). The Administrative Contract Regulation ACR) is considered as a part of the

contract. The translation of this ACR is attached in English ( see annex F) and in Arabic (see annex G).

Any wording discrepancies the Arabic version is applicable, and the accuracy of translation is the

responsibility of the consultant.

6. General Conditions

Submission of Proposal

6.1 Proposals should be submitted no later than Wednesday the 6th

of February 2008 at

17:00 hours.

6.2 Proposals will be submitted to the following addresses:

Electronically addressed to:

Ms. Najat Krima

Email Address: [email protected]

National Economic Development Board

Airport Road

Tripoli – Libya

Tel: +218-21-5623915

6.3 Proposals should be submitted in separate envelopes as follows:

Technical Proposal

6.4 This will be submitted via an email to the above mentioned email address followed

by a hard copy to the above mentioned mail address.

Financial Proposal

6.5 This will be submitted via express mail only to the above mentioned mail address.

6.6 Consultants must provide all requisite information under this Request for Proposal

(RFP) and clearly and concisely respond to all points set out in this RFP. Any

proposal, which does not fully and comprehensively address this (RFP), may be

rejected.

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6.7 Consultant must submit the C.V of the Project Manager with the proposal for review

and approval.

6.8 Consultants must submit a Power of Attorney Letter from its Principal duly

authorizing to act.

6.9 Consultants must adhere strictly to all requirements of this RFP. No changes,

substitutions or other alterations to the technical specifications of requirement

stipulated in this RFP.

6.10 Prices must be stated in US dollars, including cost break down structure of the cost

of each activity down to the cost of each sub activity.

6.11 Participants shall submit their Proposals to each of the Principal Contact Person in

two bound hard copies, plus one soft copy on CD-ROM. The soft copy text,

spreadsheets and graphics shall be compatible with Open Document format,

Microsoft Office 97, Acrobat 4.0 or higher versions.

6.12 The proposals and covering envelopes shall be marked: “National Economic

Development Board -TOR: Confidential – Proposal for consultancy services”.

6.13 The volume title and number shall be marked clearly on the cover of each volume in

the case of multi-volume submissions.

6.14 All documents which form part of the Participant’s submission of proposal shall be in

English Language.

6.15 All materials submitted will become the property of NEDB.

6.16 Three copies of the all documents and material are required.

Following Submission of Proposal

6.17 Following submission of the proposals, the NEDB reserves the right to retain

unsuccessful proposals.

6.18 All proposals will be evaluated in accordance with the provisions of the Financial

Rules and Regulations of the Libyan Law and the evaluation criteria as specified in

this RFP.

6.19 The evaluation procedure will consist of a formal, substantive, technical and

financial assessment of the proposals received. Price is an important factor;

however, it is not the only consideration in evaluating responses to this RFP.

Detailed evaluation leading to a final selection or award may take several weeks.

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Validity of Proposals

6.20 The proposal shall remain open and valid for a period of at least 90 days from the

designated closing date indicated for receipt of proposals in the RFP. Please state in

your proposal that it will remain valid for this period. Once your proposal is

accepted during this period, the price quoted in your proposal must remain

unchanged for the entire period of the resulting contract unless otherwise specified

in this RFP.

Compliance with Libyan Contract Standards

6.21 The consultant whom has been selected should accept the Libyan Contract Standards

(attached English translation of Government contracts).

Submission of Deliverables

6.22 All translation Arabic/English and English/Arabic will be the responsibility of the

consultant and within the consultant’s scope.

6.23 All deliverables of the activities will be submitted in both languages English and

Arabic.

Contract

6.24 The contract will to be signed in Arabic; the form of translated contract is attached

in (Annex D) with the Arabic version in (Annex E). The Administrative Contract

Regulation (ACR) considers as a part of the contract, the translation of this ACR is

attached in (Annex F) and the Arabic version in (Annex G).

6.25 For any wording discrepancies the Arabic version is applicable, and the accuracy of

translation is the responsibility of the consultant.

6.26 The consultant has to submit the C.Vs of the key personnel to carry out each activity

no latter than two weeks after signing the contract, for review and approval by the

NEDB.

6.27 The consultant has to submit a detailed methodology including a time schedule of

no later than two weeks after signing the contract

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6.28 Deliverables will be reviewed and approved by the EDB within two weeks of

submission.

6.29 A letter of guarantee should be submitted by the awarded consultant prior to the

signing of the contract; the letter will be 2% of the value of contract.

Confidentiality

6.30 All proposals and subsequent work submitted by the consultant will be treated in at

most confidentiality by NEDB.

6.31 This RFP and/or any part thereof must be retreated to NEDB upon request. It is

understood that this RFP is confidential and property to NEDB.

7. Annexe

7.1. Presentation summarizing the main background and features of the Development Program

(English)

7.2. Presentation summarizing the main background and features of the Development Program

(Arabic)

7.3. National Consultant Bureau (NCB) profile and proposed services to be delivered (English)

7.4. Funds allocation criteria approved by the National Planning Council (NPC)

7.5. Proposed Contract Form (English)

7.6. Proposed Contract Form (Arabic)

7.7. Libyan Contract Regulation (English)

7.8. Libyan Contract Regulation (Arabic)

rfp libyan government

Documents