Kenya Marine Fisheries and Socio-Economic Development
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PPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
GOVERNMENT OF KENYA
STATE DEPARTMENT OF FISHERIES, AQUACULTURE AND THE BLUE ECONOMY (SDF – BE)
MINISTRY OF AGRICULTURE, LIVESTOCK andFISHERIES
Kenya Marine Fisheries and Socio-Economic Development
(KEMFSED) (P163980)
PROJECT PROCUREMENT STRATEGY FOR DEVELOPMENT (PPSD)
JANUARY 2020
1|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
ABBREVIATIONS AND ACRONYMS
BMU Beach Management Unit
CBO Community Based Organizations
CDD Community Driven Development
CIDP County Integrated Development Plans
CIG Common Interest Groups
CMA Co-Management Area
CPIU County Project Implementation Unit
ESIA Environmental and Social Impact Assessments
ESMF Environmental and Social Management Framework
ESMP Environmental and Social Management Plan
GoK Government of Kenya
GRS Grievance Redress Service
ICS Individual Consultant Selection
IDA International Development Association
JCMA Joint Community Management Area
KEMFSED Kenya Marine Fisheries and Socio-Economic Development
M&E Monitoring and Evaluation
MCS Monitoring, Control, and Surveillance
MoALF Ministry of Agriculture, Livestock, and Fisheries
MSP Marine Spatial Planning
NAMARET National Mariculture Resource and Training Center
PDO Project Development Objective
PGM Project Grant Manual
PIM Project Implementation Manual
PPSD Project Procurement Strategy for Development
QCBS Quality and Cost Based Selection
RFB Request for Bid
RFP Request for Proposal
RFQ Request for Quotation
SDFA&BE State Department of Fisheries, Aquaculture, and the Blue Economy
SEA Sexual Exploitation and Abuse
SOPs Standard Operating Procedures
STEP Systematic Tracking of Exchanges in Procurement
2|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Table of Contents
1 Project Overview................................................................................................................ 5
2 Overview of Country, Borrower and Marketplace ......................................................... 12
3 Procurement Risk Analysis .............................................................................................. 22
4 Procurement Objectives .................................................................................................. 25
5 Recommended Procurement Approach for the Project: ............................................... 26
6 Preferred arrangement for low value, low risk activities (if applicable) ....................... 30
7 Summary of PPSD to be inform the Bank’s preparation of the PAD ............................. 31
Annex 1: Procurement Plan ..................................................................................................... 33
Annex 2: List of Consultants Expressed Interest for the consulting opportunities through the
KEMFSED Project [PPA] ............................................................................................................ 51
3|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
List of Tables
Table 1: Procurement Category wise Spend Profile [Including Contingencies] ........................ 6
Table 2: Broad List of Component Wise Procurement Activities .............................................. 7
Table 3: Kenya at Glance: Indicators........................................................................................ 12
Table 4: List of Registered Contractors with National Construction Authority of Kenya as on
2017 ......................................................................................................................................... 20
Table 5: Level of Participation for Consulting opportunities through KEMSSED PPA ............. 20
Table 6: Procurement Risk Analysis ......................................................................................... 22
Table 7: Detailed Procurement Approach and Options .......................................................... 29
Table 8: Procurement Plan for First 18 months: For Goods (including ICT and Supply &
Installation), Works, and Non-Consulting Services.................................................................. 38
Table 9: Procurement Plan for First 18 months: Consultancy Services - Firm and Individual. 45
4|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Kenya Marine Fisheries and Socio-Economic
Development (KEMFSED)
1 Project Procurement Strategy for Development
Project Overview
(PPSD)
Country: Kenya
Full Project Name: Kenya Marine Fisheries and Socio-Economic
Development (KEMFSED)
Total Finance ($): USD 100 million
Project Number: P163980
1 Project Overview
1.1 Project Development Objectives: To improve management of priority fisheries and
mariculture and increase access to complementary livelihood activities in coastal
communities.
1.2 PDO Level Indicators:
PDO Level Indicator #1: Fisheries management plans implemented
PDO Level Indicator #2: Proportion of nearshore waters under improved management
PDO Level Indicator #3: Annual production in mariculture by small-scale producers
supported by the project
PDO Level Indicator #4: Beneficiaries in targeted coastal communities with access to
complementary livelihood activities (disaggregated by sex)
PDO Level Indicator #5: Share of target beneficiaries with rating ‘Satisfied’ or above on
project interventions (disaggregated by sex)
1.3 Broad List of Component-based Procurement Activities
Project Procurement Profile:
The procurement profile is a mix of low to high value but non-complex contracts procured
centrally at the National level, and low value contracts procured at the County and community
level [Through community procurement] .
Procurement of Goods and Non-Consulting Services: These comprise the procurement of motor
vehicles and motorcycles, office and IT equipment, IT software & information systems, office
furniture, conferencing facilities, and printing services.
Procurement of Works: The construction of an office building to house the fisheries agencies,
the National Mariculture Resource and Training center (NAMARET), the construction and/or
rehabilitation of fisheries related infrastructure such as fish landing sites in selected areas, and
the upgrading of county fisheries and Beach Management Units (BMU) offices. Livelihood
5|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
projects for informal small-scale producers and enterprises and targeted social services delivery
projects will also be undertaken at the community level.
Procurement of consultancy services: These includes, i) technical and financial feasibility studies
and analysis, ii) monitoring and evaluation, iii) technical audits, iv) training and capacity building,
v) third party procurement audits, vi) technical assistance and (vi) the staffing of National Project
Coordination Unit (NPCU) and County Project Coordination Units (CPCUs).
Spend Profile:
Table 1: Procurement Category-based Spend Profile [Including Contingencies]
No Category Total estimated Cost in US $ Million
1 Consultancies and Services 17.73
2 Goods, Equipment and Materials 6.70
3 Civil Works 23.26
4 Trainings, workshops etc. [few of them to be
procured as Non-consulting services] 8.24
5 Sub Project Grants 28.76
6 Operating Costs 15.29
Total 100.00
6|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Operational Expenses: The project will also finance from the Bank proceeds for costs associated with operational travel, accommodation, per-diems,
office consumables and maintenance, motor vehicle maintenance, and remuneration for project implementation support personnel categorized as
“incremental operation cost1”. These expenditures will not be subject to procurement clearance hence will not be reflected in the approved
procurement plan. Items under this category would be procured using the implementing agencies’ internal procurement and administrative procedures
acceptable to the Bank. The expenditure plan under this category will be submitted annually to the Bank for no objection and will be subject to national
financial audit.
Trainings / Capacity Development initiatives through the project are not Procurement Transactions unless a service provider is exclusively hired from
Market through agreed Selection Methods of Consultant / Non-consulting services as appropriate to render training or capacity development. If there is
no price discovery and the fund is transferred to the communities or to the counties, then these transactions are not part of the procurement plan for
first 18 months and through Banks’ STEP.
Table 2: Broad List of Component-based Procurement Activities
Project Components Description of Activities Key Procurement transactions – Goods Key Procurement transactions –Consulting
and Sub- and IT, Works, Non-Consulting Services Services
Components
Component 1: Governance and Management of Marine Fisheries (approx. US$49.8 million)
Sub-Component 1.1: A. Fishery Governance Printing and dissemination of Selection of consultants :
Enhance Governance Instruments Policy/legal instruments $160,000 Selection of consulting firm for Finalization of
of Marine Fisheries B. Preparation of Marine Spatial Procurement of hardware and National Fisheries Policies etc.$360,000
and Blue Economy Plan (MSP) software at National and County Selection of consulting firm for Marine Special
(approx. US$15.6 C. Fisheries Management Governments for Fisheries Planning [MSP] $3,940,000
million) Capacity, monitoring, data Management Capacity, monitoring, Selection of Consulting firm for IT-TA
collection and Processing and data collection $400,000 consultancy and operationalizing the database
D. Specialist Fishery and Printing and Dissemination of the $ 540,000
Aquaculture consultancies Tuna Strategy for Fisheries Socio economic assessment of marine
and TAs Management Support $20,000 fisheries $180,000
E. Training Hiring of motor vehicles and Development of curriculum for fisheries
1“Incremental Operating Costs” means the reasonable costs of incremental operating expenditures incurred during the implementation of the Project, which expenditures would not have
been incurred absence of the Project
7|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Project Components Description of Activities Key Procurement transactions – Goods Key Procurement transactions –Consulting
and Sub- and IT, Works, Non-Consulting Services Services
Components
Motorcycles, at the county and training [Bandari college] $60,000
national levels for Monitoring Control Development of Strategy & action plan
and Surveillance [MCS]$750,000 implementation $330,000
Various Individual Consultants through
Individual Consultant Selection [ICS].
Sub-Component 1.2: A. Support fisheries co Printing and distribution of Joint
Improve management technical Community Management Area Selection of consultants
Management of caucus [JMCA]Plans, by-laws, SOPs $100,000 Technical support on CMA guidelines, SoPs, ToT
Nearshore Fisheries B. Consultations to finalize Purchase of Patrol and rescue boats$ & performance monitoring $1,475,000
(approx. US$8.3 national CMA guidelines & 360,000 Conduct social and ecological survey for JCMAs
million) BMU sops Purchase of surveillance equipment $300,000
C. Technical support on Co- $120,000 Development of JCMA plans incorporating
Management Area [CMA] Procurement of Co-Management priority fisheries FMP management measures;
guidelines for SOPs, TOT and Area [CMA] demarcation equipment, sensitization of BMU members on co-
performance data collection and monitoring management; development of by-laws
D. Development of new and $450,000 $500,000
review of existing JCMAs Review performance of BMUs/JCMAs $100,000
E. Joint Community Establishment of Bad weather SMS alert system
Management Area [JMCA] for fishemen $250,000
plan and BMU mentoring and Review performance of BMUs/JCMA $100,000
follow up Establishment of Bad weather SMS alert system
F. Equipment to support JCMA for fishermen $250,000
implementation
G. Review performance of Beach
Management Unit
[BMU]s/JCMA
H. Establishment of Bad weather
SMS alert system for
fishermen
8|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Project Components Description of Activities Key Procurement transactions – Goods Key Procurement transactions –Consulting
and Sub- and IT, Works, Non-Consulting Services Services
Components
I. Support for establishment
and ops IOWB and exchange
visits
Sub-Component 1.3: A. Construction of KEFS building Construction of EFS building at Selection of consultants:
Infrastructure in Nairobi Nairobi (UVUVI House) $10,000,000 architectural design & Construction Supervision
Development for B. Upgrade/Renovate/furnish Construction of County Fisheries $1,550,000
Fisheries County fisheries construction Infrastructure County Fisheries Infrastructure - Site survey,
Management infrastructure $2,000,000 EIA $50,000
(approx. US$25.9 C. National mariculture resource Construction of Training and County Fisheries Infrastructure Architectural
million) & training center (NAMARET) Resource Center & Accommodation and Design Consultancy $100,000
$1,000,000 National Marine Resource & Training Centre -
Procurement of Training equipment NAMARET- Review / revision or hatchery and
/furniture $200,000 laboratory design and supervision of
Marine Hatchery - Construction of construction $150,000
Infrastructure $900,000 Environmental Impact Assessment
Marine Hatchery - Culture facilities (EIA)$20,000
$200,000
Procurement of Laboratory
equipment and Chemicals $500,000
Construction or upgrading of county
fisheries infrastructure $8,880,000
Component 2: Coastal Community Empowerment and Livelihoods (approx. US$41.1 million)
Sub-Component 2.1: Enhanced Coastal Printing and Developing IEC - Selection of consultant:
Enhance Coastal Communities Livelihoods Information Education Technical Assistants for management of Grant
Community Communication Materials $330,000 programs $516,000
Livelihoods (approx. Procurement of 20 Motorcycles and 6 Training of Trainers & mentoring consultancy
US$29.1 million). Motor Vehicles $520,000 for PICD $900,000
Sub-component 2.2: Support Services for Procurement of Office equipment Technical Audit for sub projects $500,000
9|PagePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Project Components Description of Activities Key Procurement transactions – Goods Key Procurement transactions –Consulting
and Sub- and IT, Works, Non-Consulting Services Services
Components
Support Services for Livelihoods Enhancement $1,000,000 Strategic partnership processes and
Livelihood engagement $1,000,000
Enhancement and
Capacity
Development
(approx. US$12.0
million).
Component 3: Project Management, and Monitoring and Evaluation (approx. US$9.1 million)
National Level Procurement of Hardware for MIS/ERP Selection of consultants:
(NPCU) $66,000 Development of MIS / ERP (incl. website)
Office rehabilitation and furnishing $66,000
$100,000 Monitoring and Evaluation $400,000
Procurement of Motor vehicles
$260,000 Selection of Individual Consultant for:
Procurement of ICT Equipment Preparation of a communication strategy
(Computers/ laptops, printers, $40,000
projectors, and related accessories Development of Citizen's /stakeholder
etc.,.) for National Offices - Nairobi and engagement plan $40,000
Mombasa $20,000 Development and operationalization of Plan to
Developing Information Education address GBV and SEA related issues and risks
Communication [IEC] Materials $40,000
$59,480
CPIU Procurement of Motor vehicles (5
units) $315,000
Procurement of Motorcycles - County
Offices [TBC] (10 units) $50,000
Procurement of ICT Equipment
(Computers/laptops and accessories)
for EACH CPIU $100,000
10 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Project Components Description of Activities Key Procurement transactions – Goods Key Procurement transactions –Consulting
and Sub- and IT, Works, Non-Consulting Services Services
Components
Procurement of Boats & accessories (1
Mombasa; 3 Kilifi; 2 Tana River; 1
Lamu) $325,000
11 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
2 Overview of Country, Borrower and Marketplace
a. Operational Context
Kenya at Glance:
Kenya has an estimated population of about 48 Million (Est 2018) and a geographical area of
580,367 Sq. km, and is situated in the East of Africa bordering Somalia to the East, Uganda to the
West, Ethiopia to the North and Tanzania to the South. Kenya’s rapid population growth resulted
in more than 40% of the population being under the age of 15, making Kenya one of the
countries in the World with the highest population of young people.
Table 3: Kenya at Glance: Indicators
2004 2015 2016 2017 2018 2019 Remarks
Progressive
Ease of Doing
Improvement in
Business (Overall 129 113 92 80 612 56 the ranking with
Ranking 189
various measures
countries)
Corruption
Corruption
perception index
Perception Index3
145 143 145 143 144 145 remains
((Ranking out of
relatively the
175 countries)
same since 2004
There is room for
Competitive Index4
96 90 99 93 99 95 improvement
(Ranking out of 140
countries)
Governance aspects:
Kenya functions under democratic governance and has made good progress towards establishing
a competitive economy. Kenya’s current constitution was enacted on 27th August 2010 replacing
the old one that had been in place since Kenya’s Independence in 1963. It provides a Structure of
the Government that consists of The Executive, The Legislature, The Judiciary and The Devolved
Units of Government. The Executive comprises of the President, the Deputy President, and the
Cabinet. The Judiciary constitutes of the Supreme Court, the Court of Appeal, and High Court,
Magistrates Courts, Kadhi Courts and Tribunals. The President is the Head of State and
Government, Commander-in-Chief of the Kenya Defence Forces, and the chairperson of the
National Security Council. The 2010 constitution provides for two autonomous but
interdependent levels of government: national and 47 county governments with mainly elected
assemblies, elected governors, and governor-appointed cabinet members ratified by the
assembly. The constitution eliminated the previous third tier of government, the urban and rural
local authorities, and transferred their revenues and functions to the county governments.
Economic Aspects
2 Doing Business 2019 Training for Reform; The World Bank, October 2018. ‘Getting Electricity’ Indicator is one out of 10
indicators that comprise the Doing Business Index. In that indicator, out of 190 economies, Kenya jumped from 127 in 2016
to 71 in 2017 reflecting the increased electricity connections during the period. Kenya ranked 75 in the indicator in 2019
3 Transparency International
4
Global Competitiveness Report published by the World Economic Forum 2018
12 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Kenya is the economic, financial, and transport hub of East Africa. Kenya’s real GDP growth has
averaged over 5% during the last decade. The Gross Domestic Product (GDP) in Kenya was worth
US $ 74.94 Billion in 2017. The GDP value of Kenya represents 0.12 percent of the World
economy. Since 2014, Kenya has been ranked as a lower middle-income country after attaining
the World Bank threshold of US$ 996 GDP Income per capita. The economic expansion has been
boosted by a stable macroeconomic environment, low oil prices, rebound in tourism, strong
remittance inflows and a government led infrastructure development initiative.
Kenya imports machinery and transportation equipment, oil, petroleum products, motor
vehicles, iron and steel, resins and plastic [US $ 17.1 Billion in 2017] and exports [in 2017] US $
6.17 Billion tea, horticultural products, coffee, petroleum products, fish, cement, apparel5. The
trade deficit of US $ 10.93 Billion.
Kenya Shillings (KES) is stable and floating around 100 per US$ during previous year. The inflation
Rate in Kenya averaged 9.67 percent from 2005 until 2019.
Kenya applies East African Community (EAC) Common External Tariff – In general, Customs duty
is levied at rates between 0% and 100%, with an average rate of 25%. Regarding the sales tax,
imports into Kenya are subject to a standard VAT rate of 16%, levied on the sum of the CIF value,
duty, and other applicable taxes6.
The macro economic factors are stable. Kenya does not produce key commodities and inputs for
infrastructure development such as materials for transmission lines, transformers, sub stations,
and meters. These are the main inputs for the supply and installation. The contractors will
import these requirements and hence, the Government of Kenya likely to consider in providing
tax exemption to project, or budgeting should take the taxes in to considerations. This
exemption may help the project to get economical price and may take additional activities from
tax savings.
Sustainability Aspects:
The project will not use the sustainable procurement options. The detailed feasibility studies
and business plans increases the sustainability of various initiatives taken up by community and
county governments. Empowerment would be assessed in terms of the extent to which these
initiatives specify goals for project-supported activities, implement these activities successfully
(including the management of their own contributions, if any), and efficiently operate on viable
business model and maintain the resulting assets. The Ministry is expected to facilitate the
implementation of envisaged initiatives and build the capacity of the business communities with
the support of various advisors/service providers hired through various consultancies.
Each created asset through project funds will be operated and maintained by the respective IAs
and ensure that created assets are used for designed life span. The IAs keep adequate spares
and the staff were provided with adequate training
The Project will use the appropriate bidding documents (Bank’s Standard Procurement
Documents) and contracts formats, to ensure satisfactory environmental, social, health and
safety performance of contractors incorporate these conditions. The clauses will cover six issues
(1) Environment, Health and Safety (EHS); (2) Environmental and social monitoring by contractor;
(3) Environmental and social liabilities (4) Grievance mechanism for workers’, (5) Gender Based
Violence (GBV) and (6) Sexual Exploitation and Abuse (SEA).
Technological Aspects:
5 https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/ken/all/show/2017/
6 Further details: https://www.kra.go.ke
13 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
For envisaged Works and Goods, Equipment, Machineries are of standard specifications and
changes in the technology are gradual. Hence, the variation of price due technological changes
on the overall price is minimal.
The community will be implementing various sub projects of small size both in value and
complexity with different objectives scattered over five coastal counties. The technological tools
will be helpful for concurrent monitoring, guidance, cross learning, exchange of information
through platforms and closed groups. The Project will attempt to leverage these technological
tools (platforms for facilitation, peer discussion and intensive training through boot camps,). The
technological (ICT / web based) tools will facilitate the implementation of various envisaged
initiatives and concurrently monitor the progress.
Key Conclusions:
(i) Kenya is categorized as Lower Middle Income Non-Fragile Country. Kenya’s real GDP
growth has averaged over 5% for the last eight years;
(ii) Kenyan currency is fairly stable since 2015 and the potential foreign providers may opt
to quote in either local or foreign currency or a combination of both.
(iii) The Project will use various technological tools and leverage from existing benefits for
effective implementation
b. Client Capability and PIU Assessment
Legal and Regulatory Framework: The Public Procurement & Asset Disposal Act (PPADA 2015)
sets out the rules and procedures of public procurement by MDAs and County Governments and
provides mechanisms for enforcement of the law. Under the PPADA, the Public Procurement
Regulatory Authority (PPRA) has been established in addition to the Public Procurement
Directorate in the National Treasury. The PPRA has oversight and regulatory functions, including
undertaking procurement reviews and audits. There is a Public Procurement Complaints
Administrative Review and Appeals Board (Appeal Board) under the secretariat of PPRA that
deals with complaints received from bidders or consulting firms following national market
approach. The provisions of PPADA have been assessed and found to be largely consistent with
the World Bank Procurement Regulations, Section V, Para 5.4, National Procurement
Procedures. However, the delay in issuing the attendant Regulations may affect the
implementation of the project for contracts following the national market approach.
The proposed project’s implementing agency at the national level is the Ministry of Agriculture,
Livestock, and Fisheries (MoALF) with its State Department for Fisheries, Aquaculture, and the
Blue Economy (SDFA&BE) having the overall project implementation responsibility. A national
project coordinating unit (NPCU) would be established in Nairobi to manage and coordinate
project implementation activities. The five coastal counties (Kwale, Mombasa, Kilifi, Tana River,
and Lamu) would be responsible for carrying out specific activities at the county level.
14 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
The project will be implemented by the fully staffed NPCU and CPIUs at the Ministry and County
levels respectively. The national NPCU however, would be responsible for overall coordination
and project/contract management. The NPCU led by a project coordinator, will include technical
fisheries experts, and fiduciary (Financial Specialist and Procurement Specialist), M&E, and
environmental and social safeguards staff. The technical implementation is at the national and
local levels. At the national level, a NPCU has been established with a full-time procurement
officer who is supported by an experienced procurement consultant conversant with Bank
Procurement Regulations and procedures and the use of STEP. The NPCU is currently
implementing a PPA of US$2 million and most of the activities to be undertaken are at advanced
stages of procurement and/or implementation. The Bank has provided the requisite training and
capacity building on the Bank’s Procurement Regulations and use of STEP to the NPCU staff.
Although at the County level most activities will follow the national market approach hence use
of national procurement procedures, basic training on implementation of Bank financed
operations and the use of STEP will be necessary.
Community Procurement: The Project will provide support to each county for capacity building
and institutional strengthening through a standard package of goods, equipment and training.
CPIUs (through county field officers) or staff from the productive alliance partnerships will also
provide support to communities in organizing smallholder fishing and non-fishing households
into common interest groups (CIGs) for the participatory identification and preparation of
livelihood, social or environmental sub-projects. Community sub-project support would be
provided to beneficiaries organized into CIGs to be formed in the 19 coastal sub-counties of the
five project counties. The roles and responsibilities for the implementation of sub-projects by
CIG is outlined in a tripartite Memorandum of Understanding (MoU) to be signed between the
SDFA&BE, the county and each partner, prior to initiating implementation. CDD approach using
simplified procurement methods and arrangements to be elaborated in the relevant manuals
including the PGM, PIM and procurement manual, to be approved by the Bank and made
publicly available by the GoK. County interventions and support to community activities will also
be defined in the PGM. As the considerable amount spend through community sub projects [ US
$ 28.76 million Sub project grants, the scope of internal audit includes the post procurement
review of representative sample including physical inspection and submit report to NPCU. The
15 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
NPCU will consolidate financial year wise report and submit to the World Bank within Two
months after completion of Financial Year. Besides, this oversight the county offices will
undertake periodic monitoring [procurement] of these sub projects. The procurement specialist
at NPCU is responsible for overall procurement monitoring of the project procurement activities
including contract management in liaison with the concerned officers at various levels.
Experience
The MOALF has previous experience in implementing World Bank-financed projects, having
implemented many Bank financed operations in the past, including the ongoing National
Agriculture and Rural Inclusive Growth (NARIG) and Kenya Climate Smart Agriculture (KCSA)
Projects. However, the State Department of Fisheries, Aquaculture and the Blue Economy is new
and most of the staff do not have prior experience in implementation of World Bank funded
projects, in particular in the application of the Procurement Framework [NPF]. The predecessor
of the SDF-BE implemented the Kenya Coastal Development Project [P094692] that was closed
on June 30, 2017. The institutional memory however was not retained due to change of staff
that were involved in the implementation of the KCDP project. The implementation of the KCDP
was initially characterized by substantial delays, partly due to weak procurement capacity. The
lessons learnt will be incorporated in the design of this project. Part of the risks have been
mitigated by hiring of an experienced procurement specialist to support the proposed project’s
preparation and implementation of the PPA. It is also envisaged that experienced procurement
specialists will be deployed to all the five counties’ CPIUs.
Need for hands-on support:
As mentioned above, project is already engaged a qualified and experienced Procurement
Specialist at NPCU to provide hands-on support in articulating project procurement with the help
of Procurement Specialists at the County Governments. The Project may seek Bank’s guidance
on complex procurements. Hence, hands-on support is not required.
Contract management capability and capacity
Supported by a fully staffed NPCU and CPIUs, the ministry will be responsible for overall
project/contract management. High risk and high value procurements will be identified for
increased contract management support and will be identified in the procurement plan. The
NPCU has already developed a set of key performance indicators (KPI) for such identified
contracts and the KPIs would be monitored during actual execution of contracts. The Bank team
will provide additional due diligence and independent review of contract performance of such
identified procurements.
In view of the fact that MoALF is not familiar with procurement and contracting of construction
works envisaged in Sub-component 1.3. to support the NPCU, a consulting firm will be selected
to provide the planning, architectural design and construction supervision services. The Design
and documentation phase of the consultancy assignment will be a Lump sum form of contract
and payment will be based on the deliverables. The construction supervision phase will be Time
Based, and the payment is based on the direct inputs. The NPCU will ensure that the payment
terms are balanced and devoid of front loading. This procurement approach will ensure that the
design consultant is accountable for their design/solution, minimizes the design revisions after
identification of the contractor, and subsequent contractual variations (cost and time overrun).
Besides, NPCU may hire need based contract management specialist cum civil engineer with
specialisation of construction of building and other type of works envisaged through the project
Complaints management and dispute resolution systems
The NPCU will establish systems and mechanisms for addressing and escalating their grievances
and complaints as outlined in the PIM. A consultancy is envisaged through the project to provide
16 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
advice on institutionalisation of complaints and dispute resolution mechanisms throughout
project implementation.
The contacts of key persons involved in the project implementation with their contact details will
be disclosed at strategic places within the ministry accessible to the public. The disclosure will
also prescribe the number of days for resolving grievances/complaints at each level. In addition,
the Public Procurement and Asset Disposal Act 2015 also provides the option for submitting the
procurement related complaints to the Public Procurement Administrative Review Board.
The Communities and individuals who believe that they are adversely affected by a World Bank
(WB) supported project may submit complaints to existing project-level grievance redress
mechanisms or the WB’s Grievance Redress Service (GRS).
Key Conclusions:
(i) Kenya has a legal and regulatory framework that governs public procurement enacted in
December 2015 which provides for open advertisement of procurement opportunities,
universal eligibility, and an effective complaint handling mechanism hence conducive for the
participation of international/foreign service providers;
(ii) The NPCU has limited experienced and working knowledge of Bank’s procurement
procedures and the procurement and management of high value and complex consultant
assignments. Enough technical support and handholding in the initial stages of project
implementation will therefore be critical.
(iii) MoALF and SDF-BE is not a live department dealing with procurement and contract
management on a day to day basis. The procurement activities were involved only during
the developmental projects.
c. Market Analysis
Supply Positioning Model — Identify the risk and value thresholds of the project
High High
Strategic Critical Strategic Core
Hiring hatchery training specialist Selection of consultant for Marine
for NAMARET US $ 400,000 Special Planning [MSP] US
Selection of consulting firm for 3,940,000
Development of JCMA plans US $ Selection of consulting firm for
500,000 Technical support on CMA
Risk or Vulnerability
Selection of consulting firm for guidelines, SoPs, ToT &
Establishment of Bad weather performance monitoring US $
SMS alert system for fishermen $ 1,470,000
250,000 Construction or upgrading of
Procurement of hardware and county fisheries infrastructure $
software at National and County 8,800,000
Governments for Fisheries Construction of EFS building at
Management Capacity, Nairobi (UVUVI House) US $
monitoring, and data collection 10,000,000
US $ 400,000; and Procurement Construction of County Fisheries
of Office equipment US $ construction Infrastructure US $
1,000,000 [Same process with 2,000,000
different schedules] Construction of Training and
17 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Procurement of Laboratory Resource Center & Accommodation
equipment and Chemicals US $ US $ 1,000,000
500,000 Marine Hatchery - Construction of
Selection of consulting firm for Infrastructure US $ 900,000
Finalization of National Fisheries Selection of consulting firm for
Policies US $ 360,000 architectural design & Construction
Selection of Consulting firm for Supervision US $ 1,550,000
IT-TA consultancy and
operationalise the database $
540,000
Tactical Acquisition Tactical Advantage
Developing Information (1) Purchase of Patrol and rescue
Education Communication [IEC] boats US $ 360,000, and Procurement
Materials of 20 Motorcycles and six motor
vehicles US $ 520,000 for National and
Procurement of Motor vehicles 5 units
US $ 315,000 for Counties [Same
process with different schedules]
(2) Procurement of Boats &
accessories (1 Mombasa; 3 Kilifi; 2
Tana River; 1 Lamu) US $ 325,000
Low Estimated to Cost / Value High
Market sector dynamics
The envisaged procurement transactions comprises of works construction mainly construction of
Construction of EFS building at Nairobi (UVUVI House) US $ 10,000,000
and rehabilitation of buildings and supply of various equipment / goods. As per the National
Construction Authority, adequate number of contractors are available in the Kenyan market.
For equipment, vehicles, and ICT hardware & software, no domestic manufacturing capacity
or facility to produce these Goods, Equipment and Machineries. The bidders import the
equipment / goods and provide the after sales support. The country has a large market of
qualified and experienced local and foreign consultancy firms in all sectors, and association
between local and foreign firms is a common feature in situations where firms come together
to enhance their capacity. .
The potential bidders/proposers may treat the bidding opportunities under the project as
strategic, given that Kenya as gateway to other land locked countries, the participation and
winning of contracts in Kenya is perceived as an opportunity for further expansion.
Contractor/Consultant preferencing matrix
High
Attractiveness of
Development Core
- Pool of International Pool of International contractors are
consultants are available and available and may likely associate with
account
may likely associate with international /national contractor(s)
national consulting firm as as JV to carry out the Works and bring
High
their associate to enhance on board local experience and the
18 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
their capacity to win business potential to win business
opportunities opportunities
Nuisance Exploitable
- None - None
Relative value of account
Low
Financial
Business risk in Kenya is generally considered to be ranging from moderate to low. . The
Kenyan Shilling is a relatively stable currency while the bidders are free to quote in any freely
convertible currency including the national currency. Foreign currency availability and
repatriating forex is not difficult. Banking and financial institutions are well developed and
operating internationally. Bid prices are generally competitive. The country being East African
Economic hub, having good proximity to major global markets, with good internet and
telephone connectivity; recent commencement of operation of the Standard Gauge Railway
[SGR] services from Mombasa to the capital, …etc would make Kenya attractive to do
business.. However, limited access to and high cost of working capital affects the development
of domestic contractors with interest rates exceeding 13 % based on 2018 figures. . Due to
lack of sufficient financial resources, their capability to withstand effects of delayed payment
is limited. To improve the domestic contracting capacity, various policy improvements are
required to create an enabling environment.
Procurement trends: The NPCU has procured various procurements through Project
Preparatory advance [PPA]. The Table 5 provides the list of contracts, number of participation
and procurement lead time.
Potential Contractors in National Market:
As per the National Construction Authority’s [NAC] data base, the registered contractors are
graded and categorized into 8 categories. It is evident from the chart shown below that there
are adequate number of contractors in the market.
19 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Table 4: List of Registered Contractors with National Construction Authority of Kenya : 2018
Category of Contractors Registered with NCA of Kenya
1400
1235
1186
1200
1000
800
627
Total
600
400
237
177
200
20 15 30
0
NCA 1 NCA 2 NCA 3 NCA 4 NCA 5 NCA 6 NCA 7 NCA 8
Potential Consultants:
Table 5: Level of Participation for Consulting opportunities through KEMSSED PPA
Proposal
Name of Contract Cost Open/National and Lead Time
No Contract Description
Consultant in US$ number of Months
applicants/proposers?
#7
Review of the state of 3.50
stocks of priority Dr. Philippe
C001
fisheries in Kenya to Lallemand 50,292.00
National
inform infrastructure
and value addition
#4
Scoping study on 4.0
Dr. Julian
C002 status of marine spatial
Roberts 37,330.00
planning in Kenyan National
waters
#5
Rapid Assessment of 2
fisheries and
Dr. Constantine
C003 aquaculture
Stamatopoulos 64,992.00
information National
management system
(FIMS)
#6
Development of 3
Dr. Bernard M.
C004 baseline to measure
Fulanda 51,980.00
project outcomes on National
governance and
20 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
management
effectiveness
#6
Institutional 2.5
Mr. Arnold
C005 Assessment for project
Omondi Menya 40,349.50
implementation of National
KEMFSED
#6
C006 KEMFSED Project Team Rose Koboge 6
72,000.00
Leader National
#18
KEMFSED Project Benedict 6
C007
Financial Management Olwenyo 48,000.00
National
Consultant
#12
KEMFSED Project 6
C008 John Mugo
Procurement 48,000.00
National
Consultant
Multiface
#8
Preparation of Research 9
Environmental and Development
C009
Socio Safeguards Centre in JV 264,184.20
i National
Instruments with Spantrack
Consultant Ltd
Intervention portfolios
Capital 9
C010 To Increase Value in
Guardians 133,903.00
Selected Marine Areas National
Mariculture Scoping Advance Africa #6
C011 Study with respect to Management 9
108,346.32
Kenya Marine Waters Service National
Strategic Approach for
# 13
C012 Enterprise AESA EA Ltd 9
72,244.80
Development National
Preparation of Project #8
Jacob Okidi 2
C013 Grant Manuals and
Omolo 47,118.00
Translation to Kiswahili National
10,38,739.82
The similar trend of participation is seen from the other projects in Kenya for supply of Goods.
It is evident from the above table that the there is no perceived suppliers’ risk for the procurement
envisaged under the project. The list of participated bidders for C009, C010, CO11, CO12 is provided
in the Annex 2: List of Consultants Expressed Interest for the consulting opportunities through the
Project.
Key Conclusions:
21 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
(i) There are sufficient potential service providers available in the market (national as well as
international) to render services like Marine Spatial Planning, Design & Supervision consultants,
and ICT/ERP implementation. No perceived suppliers’ risk for the procurement envisaged
through procurement transactions.
(ii) For Works (fisheries infrastructure), the contractors are available in the national market as per
the National Construction Authority of Kenya;
(iii) Many of the Goods or marine specific equipment are not manufactured in Kenya and need to be
imported.
3 Procurement Risk Analysis
Table 6: Procurement Risk Analysis
Risk Description Description of Mitigation Risk Owner
Difference in Kenya The selection methods followed for all project NPCU SDF-BE
Government procurement will be in accordance with the Bank and MoALF
procurement Procurement Regulations [applicable version]. The
System and Bank’s Ministry of Agriculture, Livestock, and Fisheries
procurement [MoALF] will adhere to the Bank’s Procurement
Framework [NPF] Regulations for all the project procurement. If any
inconsistencies between the FA and PPAD Act 2015 &
associated Regulations, the FA will prevail.
A Project Implementation Manual is being developed
for day to day reference.
The project will be Already deployed a procurement specialist at NPCU. MoALF and
the first in the state During the first six months, deploy Procurement County
department to Specialist the Five project counties. Governments
follow the Bank’s Provide orientation on NPF to key project functionaries
procurement at PCU and at the county level; Need based refresher
framework (NPF) in courses in procurement may be conducted at regular
its implementation intervals.
MoLAF and SDF-BE Train Procurement Specialist in contract management NPCU SDF-BE
is not a live Hire a civil engineer cum contract management and MoALF
department dealing specialist for management of all envisaged Works and
with procurement related design and supervision consultants
and contract
management on a
day to day basis.
The procurement
activities were
involved only during
the developmental
projects
Procurement profile
include a major
Building work and
other construction
22 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Risk Description Description of Mitigation Risk Owner
activities.
Decentralized level At the community level, Goods and works procurement NPCU and
activities to be shall not exceed RFQ threshold and shall be in County
carried out by the accordance with the CDD arrangements provided in the Governments
Beneficiary Bank Procurement Regulations. The procedure is
/community level detailed out in the Project Grant Manual [ PGM ] and
and oversight Project Implementation Manual [PIM]
mechanism Standard specification and standards (marine, if any)
for Goods defined by will be the basis for Beneficiary
purchasing goods from the open market.
As part of due diligence appropriate authority assigned
by Ministry shall sign off to ensure compliance by the
Beneficiary in purchasing as per the defined
specification from open market for Goods and technical
compliance. A common specification will be developed
for common requirement and where ever possible,
Framework Agreement will be used. In regard to works,
detailed work description and drawings to be
developed [as these are rehabilitation and repair type]
and ensuring its physical inspection [photographs
before repair and after repair].
Multiple levels of The NPCU in MoALF being the nodal agency will NPCU
implementation, monitor the contractual performance of major
many players, procurements including contract management at all
multiple type of levels.
activities. The The PCU also monitors and provides guidance and
procurement profile oversight in regard to community level procurement
is mix of small value with the support of a customized MIS.
at community and
high value at NPCU. Each county will undertake the post procurement
review as part of the Internal Audit and submit county
wise report to NPCU. The NPCU will consolidate
financial year wise report and submit to the Bank with
first two months after closure of Financial Year
Efficient purchase Capacity building of the Procurement committee at the NPCU
of goods, community level for CDD procurement.
equipment and The NPCU and CPCU will develop the specification of
small works at standard goods / common requirement across
community level. community and wherever possible, use the Framework
agreement, which minimizes the procurement efforts.
The County governments shall carry out training of
trainers and ensure appropriate availability of
resources for carrying out capacity building of the
purchase committee who are responsible for
procurement at the community level.
23 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Risk Description Description of Mitigation Risk Owner
The Procurement Specialists at County at NPCU and
County level are responsible for overall training and
monitoring
Ensure Delivery of Guideline issued by GoK for purchase of only NPCU and
quality goods and appropriate standard (Marine) certified Goods and County
proper after sales Equipment’s with standard warranty and guarantee Government
service and use of and after sales service followed by technical and and
the goods physical verification by cluster assistance. The Community
purchased. Community may be sensitized through capacity organisations
development.
Procedural delays It is proposed to monitor and track the community NPCU, CPIUs,
for beneficiary procurement and overall implementation status under County
Fisheries/Beach the scheme through robust MIS. Government,
committees on and
Deploying competent staff (preferably with prior
selection, Community
experience in the Bank funded projects) for hand
verification of organisations
holding support and monitoring after initiating the
installations and project
disbursement of the
grants may affect
the achievement of
targets planned.
Oversight of The Terms of Reference (ToR) for Internal Audit NPCU
procurement includes review [post procurement review of
carried out at representative sample] of the compliance with agreed
decentralized level procurement procedure as per the agreed Bank’s
Procurement Regulations and Procurement
Implementation Manual. The ToR also includes physical
verification of infrastructure / Goods procured by
Beneficiary /community on sample basis. Alternatively,
this may be carried out by an independent
procurement consultant hired under the project. GIS
tagging of assets may be explored.
For implementation of the KEMFSED, the project procurement is as per the following
Procurement arrangements:
a) Carry out the project procurement activities in accordance with the World Bank
Procurement Regulations for IPF Borrowers [Procurement Regulations] – July 2016, updated
in November 2017 and August 2018. Operational
b) Initiate the procurement process only after obtaining no objection from the World Bank to
Procurement Plan [PP]. Enter the PP through World Bank’s portal Systematic Tracking of
Exchanges in Procurement [STEP] and update the PP at least annually. Update the PPSD, at
least annually or whenever there are substantial changes in the PP; Submit updated PPSD to
the Bank for seeking concurrence before changing the PP in the STEP.
c) Use the Bank’s SPDs for Goods, Non-Consultancy Service and Works and Bank’s SRFP for
Consultancy services;
24 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
d) Publish the contract award details in the suppliers.go.ke or eProcurement platform and in
the IAs official websites;
e) Adhere to the Prior / Post Review thresholds are prescribed in the Procurement Plan for first
18 months and subsequent revisions as per the Bank’s instructions
f) Extend the necessary cooperation for conducting Bank’s post procurement review or any
other reviews desired by the Bank including complaints cases if any. The IAs uploads all
relevant procurement documents to the STEP portal; and
g) Maintain a separate complaint registers and procedure for redressing grievances and
complaints, if any.
4 Procurement Objectives
(i) Update/upgrade PP periodically and update the PPSD, whenever substantially changes or at
least annually.
(ii) In accordance with agreed Procurement Regulations, Select and deploy credible, qualified and
experienced contractors, suppliers, and consultants / service providers to collaborate with
Project as partners for the accomplishment of PDOs;
(iii) From procurement perspective, contribute to the task team in the preparation of
comprehensive ToRs and associated detailed cost table & budget for all envisaged consultancy
transactions;
(iv) Complete the procurement processes and award the contracts within initial validity period
without seeking extension of the bid / proposal validity;
(v) a Carry out procurement monitoring regularly & periodically to review the performance of all
contracts and ensure that the tasks are completed on time, and without cost overruns, and
with minimum change in scope;
(vi) Provide training and capacity building to the key project staff on the Procurement Framework
and Procurement Regulations including members of adhoc evaluation committee members;
and
(vii) Provide timely and effective procurement advice at all times throughout project
implementation.
Procurement Result Indicators [KPIs]
Selection of Consultants: Should not take more than 6 months for competitive selection
Procurement of Works/Goods/Non-Consulting Services: Should not take more than 6 months for
international open procurement; more than 4 months for national open procurement.
Contract Management: 80% of the Contracts are completed within initial stipulated time,15% of
the Contracts are completed within 150% of the initial completion period including EOT and 5%
of the contracts are completed 200% of the initial completion period including EOT (Extension of
time).
25 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
5 Recommended Procurement Approach for the Project:
For Works: The Works activities envisaged under the project comprise of construction of
buildings and other small infrastructure facilities. The specification are of a standard nature and
as per the national building laws and regulations.
1. Construction of EFS building at
Nairobi (UVUVI House) $10,000,000 Specifications: Standard
2. Construction of County Fisheries
construction Infrastructure Contract: Traditional
$2,000,000
3. Construction of Training and Resource Pricing: Bills of Quantities / Admeasurement
Center & Accommodation in
These will be procured through Request
Mombasa $1,000,000
For Bids [RFB], Traditional Contract type,
4. Marine Hatchery - Construction of
fixed Price [many of them are less than
Infrastructure $900,000
18 months of construction period], Open
5. Marine Hatchery - Culture facilities
National with Single stage and Single
$200,000
Envelope [both technical and financial].
6.
7. Construction or upgrading of county These may be scattered small value
fisheries infrastructure $8,880,000 construction activities. The nature of
these activities are likely be repair and
rehabilitation. Hence, these will be
packaged county wise. Very small works
at community may be excluded from the
package
For All Major Works:
Attribute
Category
Attribute Selected Justification
Approach
1.1 Conformance Contractors would be selected based on their
Specifications/quali competence and qualifications [post] commensurate
1. Requirements
fications with the scope & complexity of work. The works
contract will have complete detailed design and
specifications that should be met during
construction.
1.2 Additional Not Applicable
sustainability
requirements
26 | P a g ePPSD: P163980 Kenya Marine Fisheries and Socio-Economic Development (KEMFSED)
Attribute
Category Attribute Selected Justification
Approach
The nature of the works, quantities and
2.1 Contract type Traditional/ad specifications are well defined (client has detailed
measurement design prepared by design and supervision review
consultants).
No innovations or new technologies expected,
Client I not having experience. Hence, the Design
and Supervision Consultant will be hired.
Estimate of quantities will be available from
detailed engineering design review, for fair bid
competitions, while actual quantities will be paid
based on contractual unit prices.
2.2 Pricing and costing Bill of Scope of works is defined in the design, comparing
mechanism Quantities unit price offers, identification of unbalanced pricing,
comprising unit abnormally low tenders, management of variations,
price and total and so on and will be better managed.
price
2.3 Selection of cost Unit price and In traditional contracts, timely and quality contract
2. Contract strategy
and price mechanism total price delivery responsibility/risk is of the contractor while
exclusive of design change risks are of the employer and unit
applicable price is appropriate.
taxes, but
inclusive of
costs covering
defect liability
2.4 Supplier Collaborative Best option given scattered location [except UVVI
relationship House] and multitude of challenges
2.5 Price adjustments Percentage/ind The contracts periods are more than 18 months.
exes
Compensation for price changes during
implementation period.
2.6 Form of contract World Bank The market are well accustomed to this form of
(terms and conditions) Standard contract. Employer needs support through a
Procurement dedicated civil engineer [as the Ministry is not a live
document department]
This form of contract, which is part of the SBD, has
been well updated over the years to reflect
cumulative experience.
Risk allocation is for a party who is in a better
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