RFP Libyan Government

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THE GREAT SOCIALIST PEOPLE'S LIBYAN 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 17Sector XSector 2Sector 1Sector 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 17Sector XSector 2Sector 1Project 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 rankingOverall
Weighing
Project
Weighing
Sector WeighingSectorProject
AProject 1
AProject 2
BProject 3
BProject 4
CProject 5
Calculation of Amounts Available for New Projects
Annual budgetProject Criteria
100Annual budget
10Outstanding payments – completed projects
50Committed payments- ongoing projects
-----
40Net budget available for new projects

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Allocation of Budget Available to New Projects
Cumulative totalProject totalNew 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: info@nedb.ly
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

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