Sessions 7-8:

the Procurement Planning

– Case Study

CASE STUDY: The Project Implementation Plan

VOCATIONAL EDUCATION PROJECT IN UTOPIA

Introduction

The recent CAS for Utopia identified the development of the Education Sector as a
priority. As a result, the Government of Utopia and the World Bank identified a
project for the strengthening of the vocational education system in Utopia. The
Ministry of Education will be responsible for project preparation and
implementation. A Trust Fund of the equivalent of US$ 250,000 was granted to the
Ministry of Education for project preparation and consultants were recruited to
prepare a feasibility study to define the project objectives, scope, basic design and
overall implementation schedule. The PIU, which was created four years ago to
implement a secondary education project, will be responsible for project preparation
and implementation, it is fairly well staffed including procurement experts trained at
ILO.

The PIU has prepared a list of project components, based on the result of the
feasibility study and has now been requested to prepare the Project Implementation
Plan (PIP), the procurement arrangements table to be included in the PAD and
Schedule 1 in the Loan Agreement for the project, which will be discussed with the
forthcoming Bank Appraisal Mission.

The participants of the course are invited to assist the PIU in the preparation of the
above mentioned documents. For that purpose, the participants will be grouped in
teams, and each team will prepare a PIP. The PIP of each team will be presented
thereafter by a representative of each group in a plenary session.

The information available from the feasibility study is summarized in the following
paragraphs.

Project scope

The project consists of the establishment of four Technical Colleges in Utopia for the
education and training of students of around 18 to 21 age who have completed a
secondary degree and wish to acquire vocational technical expertise in mechanics,
electricity and carpentry. The colleges will include classrooms, laboratory and
administrative office, all adequately equipped. The project includes all construction
works required and the supply of all material, equipment, textbooks, etc. The
colleges location and capacity would be as follow:

 A college in the Capital City for 1,500 students in a new three-storied

building to be constructed under the project,
 A college in each of the three Provincial Capital cities for 200 students each,
one college would be in a new one-storied building to be constructed, one
 Sessions 7-8:
the Procurement Planning
– Case Study

college would be established in a existing building to be renovated, and the

third one will be established as an extension of a school under construction,
 The design and technical specifications for the four buildings have already
been prepared by an engineer and approved by the Ministry of Education; the
engineer will also supervise the works.

The project components with the corresponding base cost estimates are described in
the attached Annex. The prices do not include contingencies and inflation is expected
to be marginal in the coming six years. Duties (10%) and sales taxes (VAT at 20%)
are applicable on goods only.

Additional information

 Provincial city A is a sea port equipped to import/export goods “in bulk” and
in containers in/out Utopia. There is an international airport in Capital City
and local airports in the three Provincial cities. The distances between the
four cities is around 500 km and they are connected amongst themselves and
with neighboring countries through good highways and railroads systems;
 All construction works include basic infrastructure, e.g. electromechanical
installations, fire protection, telephone system and air conditioning
 There are experienced contractors in Utopia, several of them with
construction of standard buildings of sizes costing up to around US$
8,000,000,
 Industrial capacity in Utopia is limited to furniture manufacturing, medium
size workshop equipment and assembling factories with annual turnover up to
US$3,000,000;
 Several computer and office equipment manufacturers are represented in
Utopia and offer after sales services;
 There are several dealers of different types of cars and repair shops, which
can provide maintenance for most types of vehicles.

Schedule

The PIU, with the assistance of the engineer, is expected to complete the draft
bidding documents for the main items within three months from now. If the
Appraisal is successfully completed within a month, the Bank loan is expected to be
signed and effective in six months from now. No procurement notices have been
issued yet. The Government would hope that the project will be completed in four
years; the engineer believes that five years would be more realistic. The four colleges
should be completed and operations at the same time, one month before the start of
the academic year (September 1st).

Assignments
 Sessions 7-8:
the Procurement Planning
– Case Study

 Finalize the project cost estimate, including administrative costs, sales

taxes, duties and contingencies,
 Prepare the two main components of the Project Implementation Plan
(PIP), i.e. project schedule and procurement arrangements identifying
each procurement package and the selected procurement method, and
showing the bidding time, contract award, contract delivery or
completion period for each contract. The procurement plan must meet
the timeline foreseen in the project schedule,
 Assume that this is a World Bank project and that the thresholds for
procurement methods foreseen in Utopia by comparison with previous
projects are as follows:
- Civil works: US$ 3,000,000 for ICB
- Goods: above US$ 200,000 usually ICB depending on
complexity and local market competition for the
type of goods
- Shopping: Thresholds should be recommended – Amounts to
be determined by the participants
 Determine the amount of the loan, which could be requested and
negotiated with the Bank and the disbursement categories and
percentages to be specified in Schedule I in the Loan Agreement.
 Sessions 7-8:
the Procurement Planning
– Case Study

ANNEX:
VOCATIONAL EDUCATION PROJECT IN UTOPIA

Project Components US$

Civil Works  
Construction of the new building in Capital City (40 offices, 50
classrooms, 12 laboratories/workshops) including car park,
7.000.000
surrounding perimeter walls and a combined volleyball - basketball
court, air-conditioning & electro-mechanical infrastructure
Construction of a new building in Provincial city A (10 offices, 25 1.500.000
classrooms, 3 laboratories/workshops)
Renovation of existing building in Provincial city B (10 offices, 25 1.000.000
classrooms, 3 laboratories/workshops)
Extension of building under construction in Provincial City C (10 1.500.000
offices, 25 classrooms, 3 laboratories/workshops)
sub-total 11.000.000
Goods to be procured  
Administrative furniture altogether : around 100 desks, 120 tables 50.000
and cabinets and 300 chairs
Classroom furniture altogether: around 1,500 desks, 120 tables and 1.000.000
cabinets and 1,500 chairs
Laboratory/workshop furniture (altogether: around 200 desks, 300 150.000
tables and cabinets and 400 chairs
Laboratory/workshop equipment 800.000
Machine shops 4.000.000
Mechanical (automotive) tools and Equipment 600.000
Electrical tools and Equipment 800.000
Computers (around 250 computers) & local area networks 400.000
Photocopiers (around 50) 25.000
Fax machines (around 10) 10.000
Textbooks (4000 textbooks on different technical subjects, of which
3500 will be based on curricula prepared in Utopia and each will be
400.000
produced in around 250 copies, and 500 books in 50 lots of 10
specialized titles each )
Stationary (e.g. paper, pencil, etc.) 30.000
Buses (altogether 50 buses) 5.000.000
Cars (altogether 25) 500.000
sub-total 13.765.000

Consultants Services & Training 1.000.000

TOTAL 25.765.000