Class-Exercise

2075/76

Classroom Exercise:
Preparation of Annual Procurement Plan

A new public entity has prepared annual work program and budget for the coming fiscal
year. The activities has been identified and programs have been prepared based on project
proposal for the budget to be submitted on Jestha 15.
The PE is primarily an infrastructure agency. The project has already prepared
specification, design, drawings and Bill of Quantities (BoQ) and cost estimate for all the projects
proposal included in the programs and budget.
The PE has included the following activities in the program. Now the PE has to prepare a
Annual Procurement Plan as per the formats given in the public procurement law and prepare to
make entry into in the LMBIS for budget entry.
Therefore, based on the activities below prepare the APP for the said programs based on
the information and as per requirements of law.
( In million)
Activities/ Packages Quantity / Type Cost Trimester
Estimate 1 st 2 nd 3 rd

1.Construction of Guard Quarter in the 5 Bldgs. 7.5 ¯ ¯

site in each 5 Km
2.Approach Road to the project site 4 Km in 15.0 ¯ ¯
Ch. 1-4 Km.
3.Construction of Project Managers 5 Bldgs. near Ch. 20.0 ¯ ¯
Residence building (1) and annex 1-4 Km.
buildings (3) for staffs having similar
design
4. Road Construction 15 Km. Chainage 1-15 300.0 ¯ ¯
5. Construction of Bridge 1 Km between 1001.0 ¯ ¯
(Modern Bridge) 15-16 Km.
6. Road Construction 9 Km. Chainage17-25 180.0 ¯ ¯
Km.
With above activities / packages and considering the following information,
prepare the APP in the formats stated in public procurement law and website of
PPMO:
1. The estimated amount is the basis of budget and is the basis of program costing
and budgeting.
2. If necessary, arrange the activities in sequence and determine the packages
accordingly that is to be entered into APP.
3. This project is financed by foreign loan. In the loan agreement it was mentioned
that for packages more than 20 million rupees prior review of development
partners is necessary for the procurement proceeding after preparation of Bid
Documents and after completion of evaluation.

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Class-Exercise
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4. In annual work plan and program the trimester of budget release need to be
considered and also be considered arranging the activities/ packages
accordingly. Budget expenditure will be based on the time of budget allocation
and if advance payment is to be made after concluding the contract the time
need to be considered for concerned trimester. Budget cannot be expended
unless provision is made for trimester, but can be expended after the budget is
allocated in previous trimester.
5. The budget allocated for each the packages is financed as 80 percent foreign
source and 20 percent nepalese rupees as the matching fund.
6. The period of trimester should be considered for the sequential activities with
one another and packages that to be performed in coordination with other
packages.
7. The activities / packages stated in the program can be rearranged or numbers
may be increased as per s.no. 6 and other justifications. If so selected, then the
rationale should be mentioned while preparing the APP. Cost can be
reallocated on pro-rata basis if packages are made by splitting or adding in the
packages / activities for the budget mentioned in the annual program.
8. Time period of each activities and the sequence of implementation as per the
time period mentioned for every column activities in the PPA/PPR for each
flow of activities to be completed.
9. Fill the time for only estimated row and not real time row, as it is to be filled
during the implementation of the APP activities/ package/s.
10. Select the appropriate procurement methods (NCB, ICB, Quotation etc) and
contract agreement (8 methods- ie. Unit Rate, lumpsum, cost reimbursement
etc.)
11. The following are the guiding time (for example) periods for filling column of
APP:
11.1. Time of specification/ estimate preparation: As per need, 5-15 days
11.2. Preparation time for Bidding Documents: 5-15 days, as per work volume
11.3. Period of notice publication (2-5 days, as per need)
11.4. Evaluation completion time: 15 days from the bid opening
11.5. Approval of bid by PE chief: 5-10 days- depending on authority
11.6. Letter of Intent (LoI): 7 days from the approval
11.7. Approval of Bid and Contract Agreement: 15 days from the LoI period, if
complaints are not filed at PE or Review Committee
11.8. Commencement of work: 7-15 days or as per nature of work
11.9. Time to get No Objection Letter (NoL) from the development partner/s:
depends on the practice (7 days, or less or more??)

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Class-Exercise
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