Bid Evaluation Guide

EVALUATION GUIDE
FOR
PREQUALIFICATION AND BIDDING
UNDER JBIC ODA LOANS
Procurement of Goods and Services

(except Consulting Services)
Japan Bank for International Cooperation

(JBIC)
June 2000
(Amended in January 2007)

i
Preface
This Evaluation Guide has been prepared by Japan Bank for International
Cooperation, hereinafter and throughout these documents referred to as JBIC, for use by the
Borrowers of JBIC ODA Loans (The term “Borrower” as used in this document also refers to
the Executing Agency of a project financed by JBIC ODA Loans.) in the evaluation of
prequalifications and bids, in accordance with the provisions of Guidelines for Procurement
under JBIC ODA Loans, dated October 1999 (hereinafter called Procurement Guidelines).
This document is intended specifically for assisting the Borrowers in the evaluation of
prequalifications and bids procured through International Competitive Bidding (ICB), as well
as bids through Limited International Bidding (LIB). It should also prove useful, with
appropriate modifications, to the Borrowers for bid evaluation under Local Competitive
Bidding (LCB) procedures. Its use is encouraged as the procedures it incorporates have been
developed through broad international experience and practice and it complies with
Procurement Guidelines. In case of ambiguities or discrepancies between this Evaluation
Guide and the provisions of the Loan Agreement or the provisions of the prequalification /
bidding documents, the provisions of the Loan Agreement or the prequalification / bidding
documents prevail over the Evaluation Guide.
It should be noted that, in accordance with the conditions of the Loan Agreement,
JBIC is authorized to publish a description of the contract, the names and nationalities of the
bidders, the bid prices, the name and nationality of the contract awardee and the contract
price.
Permissions from the World Bank and the Asian Development Bank to use its
standard evaluation forms and guides for prequalification and bidding as the bases for this
Evaluation Guide is herewith acknowledged.
All users are invited to submit comments on their experience with this Evaluation
Guide to:
Procurement Policy and Supervision Division

Project Development Department
Japan Bank for International Cooperation
4-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan
Telephone: +81 3 5218-9611
Facsimile: +81 3 5218-9640
URL: http://www.jbic.go.jp
E-mail: pdds@jbic.go.jp
ii
January 2007 amendment
This amendment dated January 2007 has been made in light of the present operational
policy of JBIC on the evaluation of prequalification and bid, and for clarity of the Evaluation
Guide to promote a better understanding.
In addition, Sample Forms for Prequalification Evaluation Report are incorporated

and some editorial corrections are made.
iii
Table of Contents
Preface............................................................................................................................i
January 2007 amendment..............................................................................................ii
How to Use This Guide.................................................................................................1
Section I. Evaluation Principles............................................................................................3
Section II. Prequalification Evaluation................................................................................6
Section III. Bid Evaluation ..................................................................................................11
GENERAL...................................................................................................................11
BID EVALUATION PROCEDURE
1. Basic Information and Bidding Process..................................................................13
2. Preliminary Examination of Bids............................................................................15
3. Determination of Substantial Responsiveness.........................................................17
4. Detailed Examination of Bids..................................................................................20
5. Determination of Award..........................................................................................25
Annex I. Prequalification Evaluation Report Sample Forms.......................................29

Table 1. Identification.................................................................................................34
Table 2. Prequalification Process...............................................................................35
Table 3. Preliminary Pass-Fail Examination of Applicant.........................................36
Table 4. Qualification Evaluation Summary..............................................................37
Table 5. Proposed Prequalification Decision..............................................................39
Annex I-1. Prequalification Evaluation Summary Checklist...........................................40
Annex II. Bid Evaluation Report Sample Forms............................................................41

Table 1. Identification.................................................................................................46
Table 2. Bidding Process............................................................................................47
Table 3. Bid Submission and Opening.......................................................................48
Table 4. Bid Prices (as Read Out)..............................................................................49
Table 5. Preliminary Examination..............................................................................50
Table 6. Corrections and Unconditional Discounts....................................................51
Table 7. Exchange Rates.............................................................................................52
Table 8. Currency Conversion ...................................................................................53
Table 9. Additions, Adjustments, and Priced Deviations...........................................54
Table 10. Proposed Contract Award...........................................................................55
Annex II-1. Bid Opening Checklist.....................................................................................56
Annex II-2. Preliminary Examination................................................................................57
Annex II-3. Bid Evaluation Summary Checklist...............................................................58
iv
How to Use This Guide 1
How to Use This Guide
1. The evaluation guide and forms contained in this document provide typical
organizational structures and step-by-step procedures for the evaluation of prequalification
and bids solicited through ICB. In all instances, the procedures of prequalification and
bidding, including evaluation, shall follow the Instructions to Applicants (ITA) for
prequalification and the Instructions to Bidders (ITB) for bidding of the actual
prequalification / bidding documents used.
2. JBIC issued Sample Prequalification Documents (SPD) and Sample Bidding

Documents (SBD) which are encouraged to be used by the Borrowers in conducting
Prequalification and ICB procedures under JBIC ODA loans. The following SPD and SBD
are currently available1
(a) Prequalification (PQ)

(b) Procurement of Goods (Goods)
(c) Procurement of Civil Works (Works)
(d) Procurement of Civil Works – Smaller Contracts (Small Works)
(e) Supply and Installation of Plant and Equipment (Plant)
3. The guide and sample forms in this document are based on ITA in the SPD and ITB in
the SBD.
4. Readers are expected to note that evaluation and the resulting report need not
necessarily be lengthy. Procurement of ordinary goods can usually be quickly and easily
evaluated. In general, the complexity of the evaluation lies with larger civil works and with
the supply and installation of industrial plants and equipment. The Evaluation Report should
accompany the forms, attached in Annex I and Annex II, but they may be modified to suit
specific requirements of the prequalification / bidding documents. The report should include
a number of attachments to explain details of the evaluation of prequalification and bid or to
show specific controversial wording or numbers in an application and a bid. Cross-
referencing should be used extensively, as well as references to relevant clauses in the
prequalification / bidding documents.
5. If a large project is sliced into smaller similar contracts, applications and bids are
offered on individual contracts (slices or lots) or on a group of similar contracts (packages).
Award is made to the combination of bids offering the lowest cost to the Employer.
6. The Borrowers are expected to study these guide and evaluation forms during project
preparation, in order to properly assess the managerial and administrative capacity needed for
1
Sample Documents for Selection of Consultants is available for employment of consultants under JBIC ODA
Loans.
How to Use This Guide 2
evaluation of prequalification and bid. JBIC encourages the employment of experienced

consultants to help in evaluations for complex contracts. The role of consultants for
evaluation of prequalification and bidding is explained in this document. Cost for employing
the consultant can be a part of JBIC ODA Loan funds, if agreed so in the Loan Agreement.
Section I. Evaluation Principles 3
Section I. Evaluation Principles

1) Basic Principles The evaluation work must be strictly conducted on a basis of
impartiality and fairness, with due attention to considerations
of economy, efficiency, transparency and non-discrimination
among eligible bidders, which are general principles laid down
by Procurement Guidelines (Section 1.01(c)).
2) Evaluation The evaluation organizations are expected to be set up by the

Organizations Borrower of JBIC ODA Loans. For example the organization
may consist of three tiers: (1) a responsible Department or Unit
in charge, at Executing Agency; (2) an authorized Evaluation
Committee set up within or outside of Executing Agency; (3) a
higher government authority, if necessary. However, it is
noted that the establishment and authority of evaluation
organizations must be in full accordance with laws and
regulations of the Borrower country.
It is desirable that the Borrower clearly specifies the roles and

responsibilities for evaluation procedures, taken by each party
of: the Executing Agency, the Evaluation Committee and the
higher authority, and also of the consultant involved in the
evaluation work.
Members of the Evaluation Committee are to be selected in full

accordance with laws and regulations of the Borrower country.
The members usually include, but not limited to, the
representative of Executing Agency, technical authority, and
the consultant involved in the evaluation work is strongly
recommended to be present in the evaluation process.
3) Role of When a consultant is employed for the purpose of assisting the

Consultant Borrower in evaluation of prequalification and bid under
projects financed by JBIC ODA Loans, the consultant is
expected to support and assist the evaluation process, and the
Borrower is required to maintain sufficient communication
with the consultant, during evaluation procedure. The
Evaluation Report prepared by the consultant must be fully
understood by members of Executing Agency and Evaluation
Committee, and a clarification can be made by the consultant
to the Evaluation Committee members, if requested. For this
purpose, it is strongly recommended for the consultant to be
present to the Evaluation Committee.
In the case of difference of opinion, for evaluation results,

between the Borrower and the consultant, a final evaluation
report must clearly state those differences. The consultant is
allowed to submit a copy of their evaluation report directly to
JBIC (Guidelines for the Employment of Consultants under
JBIC ODA Loans, Section 2.02(3)).
4) Record of It is desirable that the Borrower keeps a record of the

Meeting Evaluation Committee Meeting for concluding the evaluation
results and includes the record into the evaluation report.
5) Auditing In order to secure transparency in the procurement procedure

under JBIC ODA Loans, it is desirable for the Borrower to
adopt an authorized audit system, which enables to prove the
fair and impartial procurement procedure, in accordance with
the Procurement Guidelines as well as laws and regulations of
the Borrower country. The auditing function can be provided
by the Borrower’s authorized government agency or third party
professional organizations.
6) Observation of The scheduled bid invitation date indicated on the

Evaluation prequalification documents should be observed. The
Schedule prequalification result must be informed to the Applicants
within the number of days of the date of submission, as
indicated on the “Instructions to Applicants”. The desirable
prequalification evaluation period from deadline of proposal
submission to authorization of evaluation result by the
Borrower is within two to three months.
The scheduled award date indicated on the bidding documents

should also be observed, and any extension of bid validity
should be avoided. The desirable evaluation period from
tender opening to authorization of evaluation result by the
Borrower is within two to three months at maximum, even in
the case of very large sized projects.
Box 1 Involvement of Consultants
In projects financed by JBIC ODA Loans, there have been cases in which the
Borrower prepared their own Evaluation Reports, which were not necessarily
in accordance with the Evaluation Reports prepared by the Consultants. In
addition, there have been cases that the consultants were not allowed to be
present in the Evaluation Committee Meetings organized by the Borrower, in
which a conclusion different from the one that the consultant proposed is
agreed.
When there is a difference in evaluation conclusions between the Borrower
and the consultant, JBIC requires clarification for reasons behind, which are to
be carefully reviewed before concurrence is given to the contents of Evaluation
Report.
It is imperative for the consultants to be fully involved in the
prequalification and bidding evaluation procedures. The Evaluation Report
should thoroughly explain the difference in conclusion by the Borrower and the
consultants, if any.
Section II. Prequalification Evaluation 6
Section II. Prequalification Evaluation

1) Objectives of A prequalification procedure is, in principle, required for
Prequalification selecting potential contractors and suppliers for large scale
contracts or contracts with complex and highly specialized
services under JBIC ODA Loans. (Procurement Guidelines
Section 3.02) The objectives of prequalification are:
- To ensure that invitations to bid are extended only to

technically and financially qualified bidders, and to prevent
unqualified bidders from winning the bid as a result of
superficial evaluation;
- To enable prospective bidders, who may be insufficiently

qualified on their own, to avoid the expense of bidding; to give
an incentive for these potential bidders to form a joint venture
that may give them a better chance of success; and
- To limit the number of bidders, in advance, to a

manageable size for the Borrower in conducting bidding
procedure and evaluation, when a large number of bidders are
expected to participate.
The prequalification procedure must be conducted strictly in

order to secure quality in the procurement.
2) Eligibility The eligibility of the bidder is to be examined mainly on the

following three points:
- The bidder must be from eligible source country as

stipulated in the Loan Agreement;
- The bidder or any of its associates must be free from

conflict of interest for the project (Procurement Guidelines
Section 1.04); and
- A firm shall submit only one bid either individually or as a

partner in a joint venture. No firm can be a subcontractor
while submitting a bid individually or as a partner of a joint
venture in the same bidding process. A firm, if acting in the
capacity of subcontractor in any bid, may participate in more
than one bid, but only in that capacity.
3) Evaluation It is desirable that the Prequalification Criteria are prepared at

Criteria of the same time as the Prequalification Documents are prepared.
Prequalification The Criteria must be prepared before the closing date of
prequalification submission at the latest, and the Criteria should
not be changed during the Prequalification Evaluation process.
The Prequalification Evaluation Criteria are required to be
reviewed and concurred by JBIC, if it is stipulated so in the
Loan Agreement.
4) Evaluation Stage-1, “Preliminary Examination”, is to assess the document

Procedure formality required in the Prequalification Documents, for each
bidder with pass-or-fail criteria. It is necessary to confirm one
by one, whether the submitted documents and its format are in
conformity with the requirement. In case of no submission or
missing of any of required documents deemed as important,
such Applicant is to be disqualified at this stage
Stage-2, “Qualification Evaluation” is to examine whether

submitted documents comply with the qualification requirement
by using pass-or-fail criteria. If the level of qualification
requirement is too high, it tends to limit the number of bidders,
and in the reverse case it tends to allow unqualified bidders to
be passed through for the bidding. Thus the qualification
requirement must be set up carefully for each project. In
principle, an Applicant is to be disqualified if it does not satisfy
any of the qualification requirements.
The evaluation work must be done by following the criteria set
up beforehand, and the method must be based on absolute
evaluation, not by comparative evaluation. The following
items are to be noted in setting up criteria and conducting
evaluation.
(1) General Experience

The Prequalification Documents usually indicate the
minimum qualification requirements for
 Annual turnover
 Successful project experience of similar nature and
complexity (Annual production rate for the key
construction activity; Project experience in the country
concerned and in similar countries, if applicable)
(2) Personnel Capabilities

 Experience of prime candidate and alternative for key
management and specialist positions
(3) Equipment Capabilities

 Type, characteristics, minimum number and availability
of key equipment
(4) Financial Positions

Cash flow capacity (Procurement Guidelines Annex I,
Paragraph 4 (1))
Soundness of financial position
(5) Litigation History

Accurate information on any litigation or arbitration
resulting from contracts completed or under execution
(Procurement Guidelines, Annex I, Paragraph 5)
5) Evaluation of The evaluation for joint ventures and consortium is to be

Joint-Venture, conducted based on Procurement Guidelines Annex I,
Consortium and Paragraph 6.
Subcontractors
The subcontractors or suppliers/manufacturers in charge of
major critical components in the contract shall be subject to
evaluation.
Joint ventures, consortium or sub-contracting arrangement for

major critical component announced at the time of
prequalification, shall not be changed in principle. The
alteration is subject to approval by the Borrower prior to the
deadline for submission of bids (Procurement Guidelines Annex
I, Paragraph 6).
6) “Slice and In case of prequalification for “slice and package” contracts, each
Package” Applicant shall be prequalified for the maximum number and
Contracts types of contracts for which the Applicant meets the appropriate
Evaluation aggregate requirements of such contracts. (refer to How to Use
This Guide 5. for “slice and package”).
7) Prequalification In principle, no bidder should be prequalified with

with conditionality.
Conditionality
8) Limiting the It is not permissible to set a limit on the number of successful

Number of Applicants prior to the evaluation of prequalification. All

Bidders Applicants meeting the prequalification criteria specified shall
be allowed to bid. However, it is also important to set the
criteria so that a reasonable number of Applicants, normally no
more than ten, shall be qualified. Excessive number of
Applicants taking part in the bid is not preferable, because it
will increase the burden of the Borrower when evaluating the
bid proposals.
9) Review and The result of prequalification is subject to review and

Concurrence by concurrence of JBIC, if stipulated so in the Loan Agreement.
JBIC The Prequalification Evaluation Report will be submitted to
JBIC with the authorized signature of the Borrower.
Box 2 Contractors with Inadequate Capability for

Implementation
There have been cases in which the Borrower relaxed the evaluation criteria
for prequalification and bidding with the intention to favor a particular
contractor, resulting in awarding contractors with insufficient experience.
Similarly, there have been cases in which subjective technical evaluation of
contractors without sufficient implementation capability was conducted,
simply because their price proposals were low. Since JBIC sets a basic
policy to maintain non-discrimination among bidders, as stated in
Procurement Guidelines, the details of the Evaluation Reports whose
conclusion is to award bidders without sufficient capability will be strictly
examined.
When these types of evaluation take place, it tends to end up in a lengthy
bid evaluation and delayed contract award. Furthermore, incapable
contractors tend to have many troubles during implementation, due to lack of
technical capability, poor site management and short of fund for
implementation, etc. The Borrower finally tends to face with delay in
implementation and increase in contract amount, which are neither efficient
nor economical.
Therefore, the prequalification and bid evaluation must be conducted
carefully with due attention to specification and technical requirement in the
bidding documents, and the Borrower should avoid evaluation which would
result in selecting cheap but low quality bid.
Typical Prequalification Procedure for Contracts under JBIC ODA Loans
Stage-1 Preliminary Examination (pass-or-fail)

1) Formality of Application
2) Completeness of Information
3) Eligibility of Application
4) Legal Status of Application
No
Satisfied?
Yes
Stage-2 Qualification Evaluation (pass-or-fail)
1) General Experience
 Annual Turnover
 Successful Project Experience of Similar Nature and Complexity
- Annual Production Rate for the Key Construction Activity
- Project Experience in the Country Concerned and in Similar
Countries
2) Personnel Capabilities
 Experience of Prime Candidate and Alternative for Key
Management and Specialist Positions
3) Equipment Capabilities
 Type, Characteristics, Minimum Number and Availability of Key
Equipment
4) Financial Position
 Cash Flow Capacity
 Soundness of Financial Position
5) Litigation History
 Accurate Information on Any Litigation or Arbitration Resulting
From Contracts Completed or Under Execution
No
Prequalified?
Yes
Selection of Prequalified Applicants
Submission of Evaluation Report to JBIC
Concurrence by JBIC?
Disqualified
Yes
Determination of Prequalified Applicants
Section III Bid Evaluation Guide 11
Section III. Bid Evaluation
GENERAL
1. Purpose of Bid Evaluation
The main purpose of bid evaluation is to determine the lowest evaluated substantially
responsive bid among the bids submitted before the bid closing time on the date specified
in the bidding documents. The lowest evaluated substantially responsive bid may or may
not necessarily be the lowest priced bid. In order to determine accurately the lowest
evaluated substantially responsive bid in accordance with the terms and conditions of the
bidding documents, a systematic evaluation procedure designed to cover all aspects of the
evaluation process should be followed.
2. Bidding Procedures under International Competitive Bidding
JBIC has adopted three international bidding procedures which may be selected by the
Borrower to suit the nature of the particular procurement: (1) Single-Stage: One-Envelope,
(2) Single-Stage: Two-Envelope, and (3) Two-Stage. The use of Single-Stage: Two-
Envelope and Two-Stage bidding procedures must be agreed upon by JBIC and the
Borrower (Procurement Guidelines, Section 2.03).
1) Single-Stage: In the Single-Stage: One-Envelope bidding procedure, the

One-Envelope bidders submit bids in one envelope containing both the price and
Bidding Procedure the technical proposal, which are opened in public at the date and
time advised in the bidding documents. The bids are evaluated
and, following review and concurrence by JBIC, the contract is
awarded to the lowest evaluated bidder.
2) Single-Stage: Single-Stage: Two-Envelope bidding procedure is applied in the

Two-Envelope case of works, machinery and equipment for which complete
Bidding technical specifications are prepared in advance.
Procedure
In the Single-Stage: Two-Envelope bidding procedure, the
bidders submit simultaneously two sealed envelopes, one
containing the technical proposal and the other the price
proposal. Initially, only technical proposals are opened at the
date and time advised in the bidding documents. The price
proposals remain sealed and are held in custody by the Borrower.
The technical proposals are evaluated by the Borrower, while no
amendments or changes to the technical proposals are permitted.
The objective of this exercise is to allow the Borrower to
evaluate the technical proposals without reference to price. Bids

of bidders who do not conform to the specified technical
requirements and/or are not acceptable in terms of performance,
technical or service factors may be rejected, with the review and
concurrence of JBIC. The technical evaluation result will be
subject to review and concurrence by JBIC. Following the
technical evaluation, the price proposals of the technically
responsive bidders are opened in public, the price proposals are
evaluated and, following review and concurrence by JBIC, the
award of contract is made to the lowest evaluated bidder. The
price proposals of the bidders whose technical proposals have
been determined not to conform to the technical specifications
shall promptly be returned unopened to the bidders concerned.
(Procurement Guidelines, Section 2.03)
3) Two-Stage Two-Stage bidding procedure is applied in the case of turnkey

Bidding contracts, contracts for large and complex plants or procurement
Procedure of equipment, which is subject to rapid technological advances,
for which it may be undesirable or impractical to prepare
complete technical specifications in advance. In the Two-Stage
bidding procedure the bidders first of all submit their technical
proposals, on the basis of the minimum operating and
performance requirements, but without prices. The technical
proposals are opened at the date and time advised in the bidding
documents. The technical proposals are evaluated by the
Borrower and discussed with the bidders. Any deficiencies,
irrelevant provisions and unsatisfactory technical features are
pointed out to the bidders whose comments are carefully
evaluated. The bidders are allowed to revise or adjust their
technical proposals to meet the requirement of the Borrower.
Bids of bidders who are unable to amend their technical bids so
as to conform to the technical requirement may be rejected, with
the review and concurrence of JBIC. After the evaluation of
technical proposals and amended bidding documents, if any,
being reviewed and concurred by JBIC, the second stage is to
invite bidders to submit revised technical proposals and to submit
price. The price proposals and revised technical proposals are
opened in public at a date and time advised by the Borrower.
The price proposals and revised technical proposals are evaluated
and, following review and concurrence by JBIC, the award of
contract is made to the lowest evaluated bidder.
BID EVALUATION PROCEDURE

The evaluation procedure described below is generally adequate for an efficient evaluation of
bids to determine the lowest evaluated substantially responsive bid in accordance with the
terms, conditions and specifications stipulated in the bidding documents. Furthermore, the
evaluation procedure, if strictly followed, will provide fairness to all bidders, as it will
produce a transparent, fair and accurate outcome of the bidding. There are five stages in the
bid evaluation process, which should be followed, in a logical sequence. These procedures
are described based on Single-Stage: One-Envelope bidding, but they are also applicable for
Single-Stage: Two-Envelope and Two-Stage bidding. See the previous part of Section III for
difference in the procedures.
A detailed report on the evaluation and comparison of bids setting for the specific reasons on
which determination of the lowest evaluated bid was based shall be prepared by the Borrower
(Procurement Guidelines, Section 5.08). Such report should include information and
documentation to establish to the satisfaction of JBIC that principles pursuant to the Loan
Agreement and Procurement Guidelines are satisfied in the bidding and bid evaluation
process, and the proposed award of contract. Annex II is a set of tables recommended to be
included in the bid evaluation report, which are in accordance with the following evaluation
procedures.
1. Basic Information and Bidding Process
1) Identification, The basic information such as name of the Borrower, Executing

Bidding Process, Agency, Project Name and other information to identify the bid
and Bid must be filed. The Record of bidding process starting from
Submission General Procurement Notice, Prequalification and contents of
Bidding Documents are to be summarized, then information of
Bid submission and Opening is to be recorded on the format.
This information is necessary to monitor compliance with the
Loan Agreement as well as Procurement Guidelines. (Annex II,
Tables 1, 2 and 3)
2) Bid Opening2 All bids received prior to the deadline fixed for submissions shall
be opened at the time, date and place specified in the bidding
documents. All bidders that have submitted bids and their
representatives shall be permitted to be present at the opening of
bids, and all those present at the bid opening shall be required to
sign the attendance sheet.
A record of bid opening is prepared for prompt transmittal to

2
See Procurement Guidelines, Section 5.02. The record should be sent promptly to JBIC after bid opening.
JBIC, in accordance with Procurement Guidelines (Section 5.02).

The copies should be sent to all bidders. To assist in carrying out
the opening and preparing of the record, a checklist is provided in
Annex II-1. The checklist should be filled out for each bid during
the actual reading out at the meeting. The reading should be
from the original version of each bid, and the actual amounts and
other key details read out should be circled for later verification.
If bids are expressed in multiple currencies, the amount expressed
in each currency should be recorded.
Any envelopes containing modifications, or withdrawals must be

subject to the same level of scrutiny, including the reading out of
critical details, such as price changes. Failure to read out such
information and include it in the written record may result in
denial of its inclusion in bid evaluation. If a bid has been
withdrawn by cable, it should nonetheless be read out and should
not be returned to the bidder until the authenticity of the
withdrawal notice has been confirmed.
Bids received after the deadline for receipt of bids should be

rejected as stated in Procurement Guidelines (Section 5.02).
Such bids shall be returned unopened to the bidder. A summary
of the read-out bid prices, bid security, name of representatives
of bidders and their signature should be provided in Annex II,
Table 4.
3) Bid Validity The duration of the validity of each bid should be the one
specified in the ITB and should be confirmed in the signed (form
of) bid. If exceptional circumstances occur in which award
cannot be made within the validity period, extensions in writing
should be requested of bidders, in accordance with the ITB.
Extensions to the validity of bid security should also be requested
of bidders. The Borrower is advised to consult with JBIC before
requesting such extension. Note any extensions in Annex II,
Table 3.
4) Principles of After the public opening of bids, information relating to the

Evaluation examination, clarification, and evaluation of bids shall not be
disclosed to bidders or other persons not officially concerned
with this process until the successful bidder is notified of the
award of contract (Procurement Guidelines, Section 5.04). No
bidder shall be requested or permitted to alter its bid after the
bids have been opened. Only clarifications not changing the
substance of the bid are acceptable. The Borrower may ask any
bidder for a clarification of the bid, but shall not permit any
bidder to change the substance or price of the bid (Procurement
Guidelines, Section 5.03).
5) Rejection of Bids Bidding documents usually provide that the Borrower may reject
all bids. However, all bids shall not be rejected solely for the
purpose of obtaining lower prices on the same specifications,
except in cases where the lowest evaluated bid substantially
exceeds the cost estimates. Rejection of all bids may also be
justified when (a) no bid is substantially responsive to the
bidding documents or (b) there is a lack of competition. If all
bids are rejected, the Borrower shall review and consider either
revision of the specifications or modification of the project,
before inviting new bids. (Procurement Guidelines, Section 5.10)
2. Preliminary Examination of Bids
The purpose of Preliminary Examination is to confirm whether the bids received were
complete as required by the bidding documents before conducting further detailed evaluation.
An examination must be made on whether the required securities have been provided,
whether documents have been properly signed and whether the bids are otherwise generally in
order. If a bid does not substantially conform to the specifications, or contains inadmissible
reservations or is otherwise not substantially responsive to the bidding documents, it shall be
rejected. A preliminary examination shall then be made to evaluate each responsive bid and
to enable bids to be compared (Procurement Guidelines, Section 5.05). The following items
should be carefully examined.
1) Verification Verification is required toward deficiencies that, if accepted,

would provide unfair advantages to the bidder. The points to be
covered by verification are (i) whether bid documents have been
properly signed or not; (ii) whether power of attorney for the
authorized person has been submitted or not; (iii) whether joint
venture agreements, if required, are submitted or not; (iv)
whether documents, required to assess the post qualification of a
bidder with respect to its financial and technical capability to
undertake the contract, have been provided or not. All copies of
the bid should be compared with the original and corrected
accordingly, if necessary. Thereafter, the original should be
kept in a safe location, and only copies should be used in
evaluation.
2) Eligibility The bidder must be a national from or a juridical person

incorporated and registered in eligible source countries as defined
in the relevant Loan Agreement. All partners to a joint venture
shall be from an eligible source country. Bidders shall declare
the percentage of combined costs of goods and services procured
from eligible source countries and show that their bids are in
accordance with Procurement Guidelines (Section 1.04(a)),
unless a different arrangement is clearly made in the relevant
Loan Agreement. If prequalification has taken place, only bids
from prequalified bidders can be considered. A bidder
(including all members of a joint venture and subcontractors)
may be disqualified if affiliated with a firm that has provided
related consulting services on the project in accordance with
Procurement Guidelines (Section 1.04(b) and (c)).
3) Bid Security The bidding documents generally require submission of a bid

security. The bid security must conform to the requirements of
the ITB, and it must be accompanied with the bid. If the bid
security is issued as a bank guarantee, it must be consistent with
the wording of the bid security form provided in the bidding
documents. Furthermore, securities for an amount smaller or for
a period shorter than the one specified in the ITB are not
acceptable. The security for a bid submitted by a joint venture
should be in the name of the joint venture.
4) Completeness of Unless the bidding documents have specifically allowed partial

Bid bids—permitting bidders to quote for only selected items or for
only partial quantities of a particular item—bids not offering all
of the required items should ordinarily be considered
nonresponsive. However, under civil works contracts, missing
prices for occasional work items are considered to be included in
prices for closely related items elsewhere. If any erasures,
interlineations, additions, or other changes have been made, they
should be initialed by the bidder. They may be acceptable if they
are corrective, editorial, or explanatory. If they are not, they
should be treated as deviations and should be analyzed in the next
step for Substantial Responsiveness. Missing pages in the
original copy of the bid may be a cause for rejection of the bid,
as may contradictions in model numbers or other designations of
critical supply items.
3. Determination of Substantial Responsiveness
The scrutiny of bids for substantial responsiveness to the provisions of the bidding documents
is one of the most important aspects of the evaluation of bids. A bid is considered
substantially responsive if it does not contain any “Major Deviations” from the bidding
documents or conditions which cannot be determined reasonably in terms of monetary value
for financial adjustment. The purpose of this exercise is to reject bids which are not
substantially responsive to major commercial and technical requirements.
1) Substantial All bids must be checked for substantial responsiveness to the

Responsiveness commercial terms and conditions of the bidding documents. Ex-
to Commercial amples of nonconformity to commercial terms and conditions,
Terms and which are justifiable grounds for rejection of a bid are discussed
Conditions below:
(a) failure to sign the Bid Form and Price Schedules by the au-
thorized person or persons;
(b) failure to satisfy eligibility requirements, (e.g., bidder or con-

tractor are not from an eligible source countries, as defined
in the Loan Agreement);
(c) failure to submit a bid security as specified in the bidding

documents;
(d) failure to satisfy the bid validity period (e.g., the bid validity
period is shorter than specified in the bidding documents);
(e) inability to meet the critical delivery schedule or work sched-

ule clearly specified in the bidding documents, where such
schedule is a crucial condition with which bidders must com-
ply;
(f) failure to comply with minimum experience criteria as speci-

fied in the bidding documents;
(g) conditional bids, i.e., conditions in a bid which limit the

bidder’s responsibility to accept an award (e.g., acceptance of
the award is subject to government’s approval for export,
prior sale or availability of critical material available in the

market, or a bid submitted with a price escalation condition
when a fixed price bid is specified, or qualifications to the
Conditions of Contract);
(h) inability to accept the price adjustment formulae of the

bidding documents;
(i) failure to submit major supporting documents required by the

bidding documents to determine substantial responsiveness of
a bid.
2) Substantial All bids must be checked for substantial responsiveness to the

Responsiveness technical requirements of the bidding documents. Example of
to Technical nonconformity to technical requirements, which are justifiable
Requirements grounds for rejection of a bid are as follows:
(a) failure to bid for the required scope of work (e.g., for the en-
tire civil works or a complete package or a complete sched-
ule) as instructed in the bidding documents and where failure
to do so has been indicated as unacceptable;
(b) failure to quote for a major item in the package;
(c) failure to meet major technical requirements (e.g., offering

completely different types of equipment or materials from the
types specified, plant capacity well below the minimum spec-
ified, equipment not able to perform the basic functions for
which it is intended, etc).
(d) presentation of absolutely unrealistic and inadequate

implementation plans and schedules regarding performance,
technical or service factors (refer to 7) Adjustment, 4.
Detailed Examination of Bids for examples of performance,
technical or services factors.).
If alternative bids are acceptable, the bidding documents shall

specify the conditions governing such bids. The methodology of
bid evaluation and comparison for alternative bids should be
specified clearly in the bidding documents and these alternative
bids should be included in the bid evaluation and evaluated as
specified in the bidding documents. Where bidding documents
are silent in respect of the alternative bids, often, some bidders

submit alternative bids in addition to their main bids. In such a
case, bid evaluation should be among main bids only to determine
the lowest evaluated bidder. If the alternative bid of the lowest
evaluated bidder is considered more advantageous than its main
bid, such an alternative bid may be accepted.
Bids that offer deviations may be considered substantially respon-

sive if the deviations, which are classified as minor deviations,
would be acceptable in the eventual contract. The nature of such
deviations varies from contract to contract and depends on the
specific requirements, materials or civil works.
Minor deviations that will affect the cost should be expressed in
monetary terms and added to the evaluated bid price during
detailed examination. Other minor deviations that will not have
any effect on price or quality of the goods, civil works and other
services offered may be accepted for evaluation purposes without
price adjustments. The results of preliminary examination,
including substantial responsiveness, should be presented in
Annex II, Table 5. For a bid failed in the preliminary
examination including substantial responsiveness, the reasons
must be clearly explained in footnotes or in an attachment, as
necessary. An example is shown in Annex II-2. The Borrower
may find it useful to include additional tables for itemization of
responsiveness to a list of technical or commercial specifications.
These should be attached to Annex II, Table 5.
Box 3 Determination of Number of Bids for

Detailed Evaluation
After determination of the substantially responsive bids and the

nonresponsive bids, a decision must be made as to how many of the
remaining substantially responsive bids should be further evaluated in detail
to determine the lowest evaluated bid. An examination of the number of

bids remaining valid and the spread of bid prices may help determine the
course of action. Where, for example, a fairly large number of substantially
responsive bids remain and some of the bid prices are clustered around the
lowest, the lower priced bids in the cluster, irrespective of the number,
should be further evaluated. Where there is no cluster of lower priced bids,
experience shows that detailed evaluation of the three lowest priced
substantially responsive bids is generally adequate.
The governing principle is that no bid should be excluded from further
detailed evaluation if there exists a possibility that, as a result of various
financial adjustments, it could become the lowest evaluated bid. Therefore,
detailed evaluation should include all substantially responsive bids, which
have a reasonable chance of becoming the lowest evaluated bid.
4. Detailed Examination of Bids
Only those bids surviving preliminary examination and determined to be substantially

responsive need to be examined in this phase.
1) Corrections for Any arithmetic errors must be rectified, as being described in the
Errors ITB. The read-out bid prices and their corrections should be
noted in Annex II, Table 6, column (d). The corrections are
considered binding on the bidder. Unusual or large corrections
that could affect the comparative ranking of bids should be
explained in footnotes.
2) Corrections for Bids may contain provisional sums set by the Borrower for
Provisional contingencies or for nominated subcontractors, etc. As these
Sums sums are the same for all bids, they should be subtracted from the
read-out prices in Annex II, Table 6, column (e) to allow for a
proper comparison of bids in subsequent steps. However, those
provisional sums set aside for Daywork, 3 where priced
competitively, should not be included in the deductions.
3) Modifications In accordance with the ITB, bidders are allowed to submit, prior
and Discounts to bid opening, modifications to their original bid. The impact of
modifications should be fully reflected in the examination and
evaluation of the bids. These modifications may include either
3
Refers to unforeseen work. For details, see SBD (Civil Works).
increases or discounts to the bid amounts that reflect last-minute

business decisions. Accordingly, the original bid prices should
be modified at this point in the evaluation. Discounts offered in
accordance with the ITB that are conditional on the simultaneous
award of other contracts or lots of the contract package (cross-
discounts) shall not be incorporated until the completion of all
other evaluation steps. The effect of unconditional discounts (or
alternatively, increases) should be shown as in Annex II, Table 6
column (g) and (h). Any discount expressed in percent must be
applied to the appropriate base specified in the bid (i.e., check to
see if it applies to any provisional sums).
4) Currency The remaining bids as corrected for arithmetic errors and as

Conversion adjusted for discounts shall be converted to a single currency
selected by the Borrower and stated in ITB. The exchange rates
to be used in the calculations must be specified in ITB and are to
be listed in Annex II, Table 7. 　 The conversion to a single
currency should be shown in Annex II, Table 8. (Procurement
Guidelines, Section 4.10 )
5) Additions and (a) Additions

Analysis of
Prices Omissions to the bid should be compensated for by adding the
estimated costs for remedying the deficiency. Where items
missing in some bids are present in others, an average of quoted
prices could be used to compare competitors’ bids.
Alternatively, external sources, such as published price lists,
freight tariff schedules, etc., may be appropriate. The cost
determined should be expressed in the evaluation currency and
shown in Annex II, Table 9, column (c).
However, under civil works contracts, missing prices for
occasional work items are considered to be included in prices for
closely related items elsewhere.
(b) Analysis of Prices
Analysis of unit rates and prices provided by bidders, which are

generally components of the Bill of Quantities for civil work
contracts, is carried out to verify that the rates and/or prices are
not seriously unbalanced4 in relation to or substantially below the
4
An “unbalanced” or “frontloaded” bid is one in which some prices are relatively high and others low in
relation to the Engineer’s estimate of the cost of work to be performed. The imbalance may be due to error or
misconception by the bidder, but more often it is due to the bidder ’s attempt to increase its cash flow over the
cost estimate. After evaluation of the price analyses, the

Borrower may require that the amount of the performance
security be increased at the expense of the successful bidder to a
level sufficient to protect the Borrower against financial loss in
the event of default of the contractor.
6) Priced As discussed under Determination of Substantial Responsiveness,

Deviations bids with minor deviations may be considered substantially
responsive if their further consideration assigns a monetary cost or
penalty to the bid for the purpose of bid comparison, as described
in the followings:
(i) Requests for deviations that are expressed by the bidder in

vague terms, such as “we would like an increase in the amount
of mobilization advance” or “we wish to discuss changes in
the completion schedule” should ordinarily be ignored in bid
evaluation. However, a categorical statement by the bidders
taking exception to a requirement in the bidding documents
should be treated as a deviation;
(ii) If a bid requires a faster payment stream than specified in the

bidding documents, the penalty is based on the prospective
benefit to the bidder. This situation assumes use of a
discounted cash flow using the prevailing commercial interest
rates for the currencies of the bid, unless the ITB foresees the
eventuality and specifies a rate;
(iii) If a bid provides for a delivery or completion that is beyond

the date specified in the bidding documents but that is
nonetheless technically acceptable to the Borrower, the time
advantage given should be assessed a penalty specified in the
ITB or, if one is not provided, based on the rate of liquidated
damages specified in the bidding documents.
The deviations should be priced in the evaluation currency in

Annex II, Table 9, column (d).
7) Adjustments The bid evaluation may take into account of performance, technical or
service factors. The Borrower shall examine plans and schedules of
these factors to determine whether they are acceptable or not. These
factors shall comprehensively be well arranged for smooth and prompt
early part of the contract, or to increase profits by inflating the unit rates of the items which it feels will be
used more than scheduled.
project implementation. For example:
For plant and equipment contract (see SBD (Plant), ITB 25.3);
- Time schedule (program of performance)
- Operating and maintenance costs
- Functional Guarantee of the facilities
- Work, services, facilities, etc., to be provided by the Borrower
For goods contract;
- Delivery Schedule
- Operating Costs
- Functional Guarantee of Goods
- Local Handling and Transportation
In case some factors can be converted to monetary terms, the

methodology used in evaluation of these factors should be precisely
described in the bid evaluation report and should be fully consistent
with the ITB provisions. Bonuses and additional credits that reduce
the evaluated bid price will not be given in the bid evaluation for
features that exceed the requirements stated in the bidding documents,
unless specifically provided for in the ITB. The value of adjustments
will be expressed in terms of cost, for all works, plant and equipment
and most goods contracts, and should be shown in Annex II, Table 9,
column (e) and expressed in the evaluation currency.
8) Domestic Some Borrowers wish to employ the so-called Preferential Margin /

Preference Domestic Preference measures (to give preference to domestic
companies in the Borrower’s country, a certain percentage for customs
duties and so on is added to bid prices by foreign companies so that
domestic companies are awarded the contract), when comparing bids,
with a view to promoting (or giving preference to) domestic
businesses, but this is not permitted by JBIC. Furthermore, it is not
permitted to take indirect preferential measures favouring domestic
businesses, where, for example, more than a certain ratio of domestic
production or specification of a domestic production ratio is required
in the bidding.
Box 4 Evaluation for Construction Methods, Implementation

Schedule, Manpower and Equipment Allocation
Inexperienced contractors tend to propose unrealistic construction method, schedule,

and manpower and equipment allocation, due to lack of understanding for the required
construction contents. The evaluation of those subjects is often difficult to be based on
quantitative figures, but can be done on qualitative basis. However, such contractors
often make irresponsible positive answer, in order to win the contract, even if the
Borrower requests a clarification.
It is obvious that the results of employing such contractors often end up in delay of
construction and increase in the contract amount. A careful consideration is required
in evaluating construction method, schedule and manpower/equipment allocation. It
would be also effective to refer to the past construction performance of the contractor
in question, in case of difficulty in judging its capability.
Box 5 Use of Merit Point System for Bid Evaluation
Recently, there are some cases where Borrowers apply so-called “Merit Point
System” in bid evaluation, following relevant procurement practice of the Borrower’s
country. The evaluation score under this system is a combined sum of technical and
price evaluation by a given weight percentage for each part, e.g., 50% for technical and
50% for price, or 30% and 70%.
The problem of this system is difficulty in making fair evaluation on technical part,
since the methodology is not yet established to secure impartiality and objectivity. For
procurement of goods and services, the technical part of evaluation should be by pass-
or-fail method, where the purchaser must be on principle to clearly indicate the
required technical specifications to bidders. The bidders are expected to offer the
lowest price while satisfying the technical requirement given by the bidding
documents. Under the Merit Point System, it seems there exists an ambiguity, for the
technical requirement, and method of technical evaluation thus tends to be unclear and
unfair to bidders. Furthermore, there is no established rule for the allocation of weights
to price and non-price factors. Thus, JBIC considers that the Merit Point System is not
desirable to be applied for bid evaluation under JBIC ODA Loans.
5. Determination of Award
In the comparison of bids for most contracts procuring goods and services, except for
consulting services, the corrected and discounted bid prices, together with adjustments for
omissions, deviations, and specified evaluation factors, have been noted in Annex II, Table 9.
The bidder with the lowest total is the lowest evaluated cost bidder at this stage, subject to:
 Application of any discounts, contingent on the simultaneous award of multiple

contracts or lots; and
 Postqualification evaluation, or, if prequalification has occurred, confirmation of

prequalification information.
1) Cross-Discounts These are conditional discounts offered in the event that more
than one contract or lot will be awarded to the same bidder. Bid
evaluation in such cases can be quite complicated. The sizes of
cross-discounts offered by each bidder may vary with the
potential number of contracts awarded. The ITB may also limit
the number or total value of awards to a bidder on the basis of its
financial and technical capacity.5 Thus, a bidder offering the
lowest evaluated bid on a particular contract may be denied
award because of such a restriction. The Borrower shall select
the optimum combination of awards on the basis of least overall
cost of the total contract package, consistent with the
qualification criteria. Presentations of the calculations should be
made on an attachment to the report, which should include the
bid evaluation(s) for the other contracts, if they have been
evaluated separately.
2) Qualification If prequalification was conducted, the bidder whose bid is the

lowest evaluated should receive the award, unless the bidder’s
qualifications have since materially deteriorated or the bidder has
since received additional work that overstresses its capacity. The
Borrower should satisfy itself fully on both accounts. The
Borrower is recommended to request bidders to update
information concerned as necessary.
Where prequalification has not occurred, the prospective awardee

should be subjected to postqualification, the procedures for which
are described in the ITB in accordance with Procurement
Guidelines (Section 5.07).6
5
This restriction may originate with prequalification.
If the lowest evaluated bidder fails in postqualification

examination, its bid should be rejected, and the next ranked bidder
should then be subject to postqualification examination. If
successful, this bidder should receive the award, otherwise the
process continues.
The rejection of a bid for reasons of qualification requires

substantial justification, which should be clearly documented in
attachments to the report. A history of poor performance may
be considered as a substantial justification.
3) Alternative Bids The ITB may request or allow the Borrower to accept alternative
bids under the stipulation that only the alternative submitted by
the lowest evaluated bidder and conforming to the bidding
documents will be considered.
Calculations for the evaluation of alternatives should be provided

in an attachment to the report.
4) Proposed Award The amount of the proposed award shall be the bid price as
submitted by the winning bidder and adjusted as described in the
ITB for corrections, any discounts (including cross-discounts),
and acceptance by the Borrower of alternative offers from the
lowest evaluated bidder. Adjustments to the final price and scope
of the contract to correct for acceptable omissions and quantity
variations in the bid may be negotiated with the lowest evaluated
bidder. Prior concurrence of JBIC with the proposed award is
required before such negotiations may be started. Annex II,
Table 10 should be filled out to establish the actual amount of the
contract award.
The Borrower may consider rejection of all bids, with prior

concurrence by JBIC, if (a) none of the bids are found to be
responsive, (b) bids are unreasonably high in price compared
with earlier estimates, or (c) none of the bidders are qualified.
(Procurement Guidelines, Section 5.10)
5) Report (i) Prior Review: The Borrower, if required in the Loan Agreement,
Submission must submit the completed bid evaluation report containing the
required summary to JBIC as soon as possible after the bid
6
SPD provides useful information for postqualification evaluations.
evaluation, preferably no later than one (1) month prior to the

expiration of the bid validity period. The report should include
the appropriate items listed in Annex II.
The Borrower is encouraged to communicate as needed with JBIC

about the evaluation of bids. However, JBIC will not participate
in the evaluation itself.
(ii) Other Instances: For bid evaluation reports not subject to prior
review, the Borrower may award the contract upon completion of
bid. Subsequent submission of the bid evaluation report to JBIC
may be required after award, in order to review its compliance
with Procurement Guidelines. The Borrower is advised to
prepare the bid evaluation report in the same manner as they do
when prior review is required.
6) Review of Bid Upon receipt by JBIC, all bid evaluations subject to prior review
Evaluation will be reviewed. The Borrower may be requested to provide
by JBIC additional information and justification for the proposed contract
award. The Borrower also may be requested to contact bidders
for necessary clarifications. When JBIC is satisfied with the
evaluation of bids and the proposed award, a written notice of
“concurrence” will be issued by the JBIC official designated for
such correspondence.
For bid evaluation not subject to prior review, any doubts about
the justification for award should be raised with JBIC prior to
award signing. The Borrower should ensure that all
correspondence received from bidders concerning evaluation has
been taken into account.
7) Award of Promptly after executing a contract, the Borrower, if required in

Contract the Loan Agreement, must submit to JBIC a duly certified copy of
and the contract for JBIC’s review and concurrence. When JBIC
Review of determines the contract to be consistent with the Loan Agreement,
Contract a written notice of “concurrence” will be issued by the JBIC
by JBIC official designated for such correspondence.
JBIC reserves the right to reject to finance contracts that have not
been procured in accordance with the Loan Agreement. 7
7
If funds from the loan have already been disbursed, it must be reimbursed. Refer to Procurement
Guidelines, Section 1.05.
Bid securities of unsuccessful bidders should be returned

promptly after award has been made. However, if contract
effectiveness is contingent on the receipt of a performance
security or other condition, the Borrower may consider seeking an
appropriate extension of time for the bid validity and the
accompanying bid security of other bidders.
As mentioned in the Preface, JBIC is authorized to publish a

description of the contract, the names and nationalities of the
bidders, the bid prices, the name and nationality of the contract
awardee and the contract price. Any further information on the
bids or on their evaluation, including the bid evaluation report, is
held in confidence by JBIC. In anticipation of any post reviews
by JBIC, the Borrower should ensure that bidding and evaluation
documents are to be securely stored.
29
Annex I.
Prequalification Evaluation Report

Sample Forms
30
Prequalification Evaluation Report
Name of Project:
Loan No.:
Contract Name:
Identification Number:
Date of Submission to JBIC:

31
Introduction
1. This Annex is intended specifically to assist in reporting the results of the

evaluation of the applications for prequalification. The Borrower should evaluate
the applications received and prepare a detailed analysis of them. A summary
report of this analysis should be submitted to JBIC for review; the summary should
address each of the pass-fail criteria set in the prequalification documents.
Disqualification of the Applicants who fail to meet the criteria should be explained.
2. Tables 1-5 should invariably accompany the summary, but they may be adapted to
suit specific requirements of the prequalification documents. The summary should
include a number of attachments and additional tables to explain details of the
individual evaluation of Applicants who were not prequalified. References to
pertinent clauses in the prequalification documents should be uses as necessary.
3. The summary should make special mention of Joint Venture Applicants in regard
to the completeness of their documentation, eligibility requirements including
sharing provision and liability of the JV partners.
4. In case the prequalification evaluation includes “slice and package” requirements

(refer to How to Use This Guide 5.), the summary should mention the procedure
used in the evaluation and show the aggregate total of contract value for which
Applicants are considered prequalified by the Borrower.
5. A checklist for the evaluation summary is presented in Annex I-1.

32
SAMPLE TABLE OF CONTENTS
SUMMARY
1. INTRODUCTION
1.1 Prequalification Identification and Prequalification Evaluation
Committee
1.2 Prequalification Process
2. PRELIMINARY EXAMINATION
2.1 Prequalification Documents
2.2 Verification
2.2.1 Authorized Sign
2.2.2 Power of Attorney for Authorized Person
2.2.3 Joint Venture Agreements
2.3 Completeness of Application
2.4 Eligibility
3. QUALIFICATION EVALUATION
3.1 General Experience
3.1.1 Annual Turnover
3.1.2 Successful Project Experience of Similar Nature and Complexity
a) Annual Production Rate for the Key Construction Activity
b) Project Experience in the Country Concerned and in Similar
Countries
3.2 Personnel Capabilities
3.2.1 Experience of Prime Candidate and Alternative for Key
Management and Specialist Positions
3.3 Equipment Capabilities
3.3.1 Type, Characteristics, Minimum Number and Availability of Key
Equipment
3.4 Financial Position
3.4.1 Cash Flow Capacity
3.4.2 Soundness of Financial Position
3.5 Litigation History
3.5.1 Accurate Information on Any Litigation or Arbitration Resulting
From Contracts Completed or Under Execution
4. PROPOSED PREQUALIFICATION DECISION
5. CONCLUSIONS
APPENDICES
33
Table 1 Identification
Table 2 Prequalification Process
Table 3 Preliminary Pass-Fail Examination of Applicants
Table 4 Qualification Evaluation Summary (Pass-Fail Criteria)
Table 5 Proposed Prequalification Decision
34
SAMPLE FORMS
Table 1. Identification
1.1 Name of Borrower

1.2 Loan Agreement (L/A) number
1.3 Date of effectiveness of L/A
1.4 Closing date of Application
Submission
(a) original
(b) revised
1.5 Name of project
1.6 Executing Agency (or other
organization responsible for purchase
or employment)
(a) name
(b) address
1.7 Contract number (identification)
1.8 Contract type Lump-sum Unit-price Other
1.9 Contract description
1.10 Method of procurement (check one) ICB LIB Other

1.11 Fixed price contract Yes No
1.12 Cofinancing for the Contract, if any:
(a) agency name
(b) percent financed by agency
1.13 Bidding Procedures Single-Stage: One-Envelope
Single-Stage: Two-Envelope
Two-Stage
35
Table 2. Prequalification Process
2.1 Invitation for prequalification

(a) first issue date
(b) latest update
(c) name of newspaper
(d) date of copy sent to JBIC
2.2 Prequalification Document
(a) title, publication date
(b) date of JBIC’s concurrence, if
necessary
(c) date of issue to Applicants
2.3 Number of firms issued documents
2.4 Amendments to documents (if any)
(a) list all issue dates 1. 2. 3.
(b) date(s) of JBIC’s concurrence 1. 2. 3.
2.5 Applicants’ submission deadline
(a) original date, time
(b) extensions, if any
2.6 Number of applications submitted
36
Table 3. Preliminary Pass-Fail Examination of Applicant
Name of Country1 Date of Completeness2, Eligibility4 JV Explanation6

Applicant Submission of Verification3 of Requirements5
Application Documentation
1. Place of incorporation and place of registration (for firms).

2. Completeness of documentation: Are the applications offering all of the items and essential information requested? Major deviations to the requirements such
as no presentation of financial statements or balance sheets, or failure to present sufficient information on financial means to meet the specified cash
requirements may be a basis for a “fail” mark.
3. Verification: Attention should be directed toward deficiencies related to the validity of the application itself. For example: Is the letter properly signed? Are
the applications of Joint Ventures signed by each partner in the joint venture? Has a copy of the JVA or Letter of Intent been signed by all JV partners and
submitted with the application?
4. Eligibility: In addition to the eligibility of nationals from eligible source country as stipulated in the Loan Agreement, Applicants shall be eligible to
participate in the bidding of the works in reference to the “Fraud and Corruption” policy of JBIC. (See ITA 1.2 for details.)
5. JV requirements: Is the lead partner of the JV clearly identified and properly authorized? Are the JV’s sharing provisions in compliance with the minimum
participation specified in ITA 5.1? Are all partners in the JV legally liable, jointly and severally, during bidding and execution of the contract?
6. If the application fails preliminary acceptance in one of the column topics, the reasons shall be clearly explained in this Explanation column or in an
attachment, as necessary.
37
Table 4. Qualification Evaluation Summary

(Pass-Fail Criteria)
Qualification Topic Specified Criteria Application Explanations

(as stated in ITA) 1 2 etc.
General Experience
Annual Turnover
- ITA 4.3(a): * As prime contractor over
Average annual the last years
turnover * Minimum average turnover Amount
US$ equivalent. US$
Successful Project
Experience
- ITA 4.3(b): * As prime contractor within
Successful project the last years
experience of similar * Experience includes
nature and complexity execution of
* Minimum annual
production rate for the key
construction activity (if
applicable)
* Project experience in the

country concerned and in
similar countries as required
(if applicable)
Number
* Required number of
projects
Personnel Capabilities
- ITA 4.4: * Position 1:
Experience of prime - Required number of years Years
candidate and of work experience
alternative for key - Required number of years Years
management and of similar work
special positions experience
etc.
* Position 2:
- Required number of years Years
of work experience
- Required number of years Years
of similar work
experience
etc.
Equipment
Capabilities
38
- ITA 4.5: Type, characteristics,

Ownership of minimum number and
equipment or the availability of key equipment
ability to hire or lease required
equipment needed to Minimum
perform the works Type Number
1 Number
2 Number
etc.
Table 4. Qualification Evaluation Summary

(Pass-Fail Criteria)
(cont’d)
Qualification Topic Specified Criteria Application Explanations

(as stated in ITA) 1 2 etc.
Financial Position
- ITA 4.6 * Construction cash flow for
Cash flow capacity a period of months
* Minimum required amount Amount
US$ equivalent US$
- ITA 4.7 Sound financial statements Pass-Fail

Soundness of financial for the last years
position
Litigation History
- ITA 4.8 Accurate information on any Pass-Fail
History of litigation or litigation or arbitration
arbitration resulting from contracts
completed or under execution
over the last years
Subcontracting
- ITA 4.2 Required highly specialized Pass-Fail
Specialist inputs (essential for execution
subcontractors (if any) of the contract)
1. If the Applicant fails a specific criterion or if “pass” has been given, accepting a minor deviation
(ITA 4.1), the reasons shall be clearly explained in the Explanation column or in a separate
attachment, as necessary.
39
Table 5. Proposed Prequalification Decision
1. Prequalified Applicants
i)
ii)
iii)
etc.
2. Rejected Applicants
Reasons for rejection
Applicant’s name
i)
ii)
iii)
etc.
40
Annex I-1. Prequalification Evaluation Summary Checklist
1. Attach Identification and Prequalification Process data (Tables 1, 2).
2. Provide a list of Applicants and place of incorporation and registration as well

as the date of submission of their applications (first three columns of Table 3).
3. Provide details on eliminating any applications during preliminary examination

(Table 3). Particular attention should be given to issues related to eligibility
and JV requirements.
4. Attach copies of any letters to Applicants requesting clarifications or

substantiation of information. Provide copy of responses.
5. Provide explanations for giving a “fail” mark to an Applicant in any of the

specified criteria (Table 4). If necessary, include a separate attachment with
explanations.
6. Provide detailed reasons for rejecting an Applicant (Table 5).

41
Annex II.
Bid Evaluation Report Sample Forms

42
Bid Evaluation Report

and
Recommendation for Award of Contract
Name of Project:
Loan No.:
Contract Name:
Identification Number:
Date of Submission to JBIC:

43
Request for Review and Concurrence by JBIC
If the contract is subject to prior review, the bid evaluation report should be
attached with a letter of Request for Review and Concurrence by JBIC, in accordance
with the form specified in the relevant Loan Agreement, if any, from the Borrower
ministry, department, or agency responsible for communications with JBIC. The letter
should highlight conclusions and offer any additional information that would help to
expedite review by JBIC. In addition, any unresolved or potentially contentious issues
should be highlighted. The letter should be sent to the responsible official of JBIC
specified in the Loan Agreement.
44
SAMPLE TABLE OF CONTENTS
SUMMARY
1. INTRODUCTION
1.1 Bid Identification and Bid Evaluation Committee
1.2 Bid Process
1.3 Bid Submission and Opening
2. PRELIMINARY EXAMINATION OF BIDS

2.1 Bid Documents
2.2 Verification
2.2.1 Authorized Sign
2.2.2 Power of Attorney for Authorized Person
2.2.3 Joint Venture Agreements
2.2.4 Qualification Information
2.3 Eligibility
2.4 Bid Security
2.5 Completeness of Bid
3. DETERMINATION OF SUBSTANTIAL RESPONSIVENESS

3.1 Substantial Responsiveness to Commercial Terms and
Conditions
3.1.1 Authorized Sign to Bid Form and Price Schedules
3.1.2 Eligibility
3.1.3 Bid Security
3.1.4 Bid Validity
3.1.5 Time for Completion
3.1.6 Conditionality
3.1.7 Price Adjustment Formulae
3.1.8 Others
3.2 Substantial Responsiveness to Technical Requirements
3.2.1 Scope of Work
3.2.2 Quotation for Items in Package
3.2.3 Technical Requirements
3.2.4 Plans and Schedules of Performance, Technical or Service
Factors
[Example for Civil works]
a) Construction Time Schedule and Sequence of Construction
Activities
b) Construction Method (Site Organization, Key Field
Personnel, Construction Facilities)
c) Quality Control System
d) Labour and Materials (Subcontracting, Cash Flow)
e) Safety Measures
3.2.5 Alternative Offers
45
3.2.6 Minor Deviations
4. DETAILED EXAMINATION OF BIDS

4.1 Corrections for Errors
4.2 Corrections for Provisional Sums
4.3 Modifications and Discounts
4.4 Currency Conversion
4.5 Additions and Analysis of Prices
4.5.1 Additions
a) Omissions
b) Missing Items in Bill of Quantities
4.5.2 Analysis of Prices: Examination of Unbalanced Prices
4.6 Priced Deviations
4.6.1 Categorical Statements by Bidders
4.6.2 Terms of Payment
4.6.3 Time for Completion
4.7 Adjustments
5. DETERMINATION OF AWARD
5.1 Cross-Discounts
5.2 Qualification
5.3 Alternative Bids
5.4 Proposed Award
6. CONCLUSIONS
APPENDICES
Table 1 Identification
Table 2 Bidding Process
Table 3 Bid Submission and Opening
Table 4 Bid Prices (as Read Out)
Table 5 Preliminary Examination
Table 6 Corrections and Unconditional Discounts
Table 7 Exchange Rates
Table 8 Currency Conversion
Table 9 Additions, Adjustments, and Priced Deviations
Table 10 Proposed Contract Award
SAMPLE FORMS
46
Table 1. Identification
1.1 Name of Borrower

1.2 Loan Agreement (L/A) number
1.3 Date of effectiveness of L/A
1.4 Closing date of Bid Submission
(a) original
(b) revised
1.5 Name of project
1.6 Executing Agency (or other
organization responsible for
purchase or employment)
(a) name
(b) address
1.7 Contract number (identification)
1.8 Contract type Lump-sum Unit-price Other
1.9 Contract description
1.10 Method of procurement (check one) ICB LIB Other

1.11 Fixed price contract Yes No
1.12 Cofinancing for the Contract, if any:
(a) agency name
(b) percent financed by agency
1.13 Bidding Procedures Single-Stage: One-Envelope
Single-Stage: Two-Envelope
Two-Stage
Table 2. Bidding Process

47
2.1 Invitation for Bids

(a) first issue date
(b) latest update
(c) name of newspaper
(d) date of copy sent to JBIC
2.2 Prequalification (if required)
(a) number of firms prequalified
(b) date of JBIC’s concurrence to
evaluation result8
2.3 Bidding Document
(a) title, publication date
(b) date of JBIC’s concurrence, if
necessary
(c) date of issue to bidders
2.4 Number of firms issued documents
2.5 Amendments to documents (if any)
(a) list all issue dates 1. 2. 3.
(b) date(s) of JBIC’s concurrence 1. 2. 3.
2.6 Date of pre-bid conference (if any)
Table 3. Bid Submission and Opening
3.1 Bid submission deadline

8
Cite the date for amendment and JBIC’s concurrence, if any.
48
(a) original date, time

3.2 Bid opening date, time
3.3 Record of bid opening, date sent to
JBIC
3.4 Number of bids submitted
3.5 Bid validity period (days or weeks)
(a) originally specified
Note: Contracts under one-stage: two-envelope bidding and two-stage bidding will require the information
requested for each stage to be filled out.
49
Table 4. Bid Prices (as Read Out)
Bidder Identification Read-out Bid Price(s) Bid Security Modifications Name of Signature
Amount or Comments1 Representative
Name of City/State or Country Currency(ies) Amount(s)
Bidder Province
(a) (b) (c) (d) (e) (f) (g) (h) (i)
etc.
1
Describe any modifications to the read-out bid, such as discounts offered, withdrawals, and alternative bids. Note also the absence of any required bid
security or other critical items. Refer also to Section III, para. 1 herein.
50
Table 5. Preliminary Examination
Bidder Verification1 Eligibility Bid Security Completeness Substantial Acceptance for

of Bid Responsiveness Detailed Examination
(a) (b) (c) (d) (e) (f) (g)
etc.
Note: For explanations of headings, see Section III, para. 2 herein. Additional columns may be needed, such as for responsiveness to technical conditions.
See example in Annex II-2.
1
Verification: The points to be covered by verification are (i) whether bid documents have been properly signed or not; (ii) whether power of attorney for
the authorized person has been submitted or not; (iii) whether joint venture agreements, if required, are submitted or not; (iv) whether documents,
required to assess the post qualification of a bidder with respect to its financial and technical capability to undertake the contract, have been provided or
not.
51
Table 6. Corrections and Unconditional Discounts
Bidder Read-out Bid Price(s) Corrections Corrected Bid Unconditional Corrected/Discounted

Price(s) Discounts2 Bid Price(s)
Currency(ies) Amount(s) Computational Provisional Percent Amount(s)
Errors1 Sums
(a) (b) (c) (d) (e) (f) = (c) + (d) - (e) (g) (h) (i) = (f) – (h)
etc.
Note: Only bids accepted for preliminary examination (Table 5, column g) should be included in this and subsequent tables. Columns a, b, and c are from
Table 4 (columns a, d, and e, respectively).
1
Corrections in column d may be positive or negative.
2
If the discount is offered as a percent, column h is normally the product of the amounts in columns f and g. Refer to Section III para. 4-3). If the discount
is provided as an amount, it is entered directly in column h. A price increase is a negative discount.
52
Table 7. Exchange Rates
Currency Used for Bid Evaluation:
Effective Date of Exchange Rate:
Authority or Publication Specified for Exchange Rate:
Note: Attach copy of exchange rates provided by specified authority or publication.

53
Table 8. Currency Conversion

Specify Evaluation Currency:
Bidder Currency(ies) of Bid Corrected/Discounted Applicable Evaluation Currency

Bid Price(s) Exchange Rate(s) Bid Price(s) Total Bid Price
(a) (b) (c) (d) (e) = (c) x (d) (f)
etc.
54
Table 9. Additions, Adjustments, and Priced Deviations

Specify Evaluation Currency:
Bidder Corrected/Discounted Additions2 Priced Deviations2 Adjustments2 Total Price

Bid Price1
(a) (b) (c) (d) (e) (f) = (b) + (c) + (d) +
(e)
etc.
1
Column b is from either Table 8, column f.
2
Each insertion in columns c, d, or e should be footnoted and explained in adequate detail, accompanied by calculations. Refer to paras. 4-5), 4-6), and 4-7)
respectively of Section III.
55
Table 10. Proposed Contract Award
1. Lowest evaluated responsive bidder

(proposed for contract award).
(a) name
(b) address
2. If bid from joint venture, list all
partners, nationalities, and estimated
shares of contract.
3. Principle country(ies) of origin of
goods/materials.
4. Estimated date (month, year) of
contract signing.
5. Estimated delivery to project
site/completion period.
Currency(ies) Amount(s)
1
6. Bid Price(s) (Read-out)
7. Corrections for Errors2
8. Discounts3
9. Other Adjustments4
10. Proposed Award5
11. Disbursement Category6
1
From Table 6, columns b and c.
2
From Table 6, column d.
3
From Table 6, column h. Include any cross-discounts. See Section III, para. 5-1).
4
All adjustments should be explained in detail.
5
Sum of the prices in Items 6–9.
6
From the Loan Agreement.
56
Annex II-1. Bid Opening Checklist

(To be filled out for each bid as it is read out)
Contract Reference:
Bid Opening Date: Time:
Name of Bidder:
(a) Is outer envelope of bid sealed?
(b) Is bid form completed and signed?
(c) Expiration date of bid:
(d) Is documentary authority for signing enclosed?
(e) Amount of bid security (if required): (state currency)
(f) Describe any “Withdrawal” or “Modification” submitted
(g) Describe any alternative bid made:
(h) Describe any discounts or modifications offered:
(i) Additional comments:9
(j) Name of bidder or representative present:
(k) Total bid price: (list currencies and amounts or percentages)10
Signature of responsible official: Date:
9
Read out and record model numbers of equipment.
10
If bid is for a package of contracts, the price for each lot or item should be read out.
57
Annex II-2. Preliminary Examination

Bidder Verification Eligibility Bid Security Completeness Substantial Acceptance for
of Bid Responsiveness Detailed
Examination
Bidder A Yes Yes Yes Yes Yes Yes
Bidder B No1 Yes Yes Yes Yes No
Bidder C Yes Yes Yes Yes Yes Yes
Bidder D Yes Yes No2 No3 Yes No
Bidder E Yes No No4 Yes Yes No
Bidder F Yes Yes Yes Yes Yes Yes
Bidder G Yes Yes Yes Yes Yes Yes
Bidder H Yes Yes Yes Yes Yes Yes
1
Joint venture agreement missing.
2
Bid security not in freely convertible currency.
3
Does not include cost for required disposal of hazardous wastes found at the site.
4
Required validity period of security not met (8 weeks instead of 12 weeks).
58
Annex II-3. Bid Evaluation Summary Checklist
1. Attach bid opening record, if not previously submitted (Section III, para. 1, 2).
2. Explain any inconsistencies between prices and modifications to prices read out at bid
opening (and written into the record) and presented in Table 4.
3. Provide details on eliminating any bids during preliminary examination (Table 5).
Copy select pages from bids, as desirable, to show examples of objectionable features.
4. If provisional sums in Table 6 vary among bidders, explain. Explain any substantial
corrections for computational errors that may affect the ranking of bidders.
5. Provide a copy of the rates requested for Table 7 and used in Table 8.
6. The additions, adjustments, and priced deviations in Table 9 require detailed

explanations where they may affect the ranking of bidders.
7. Explain any cross-discount (Section III, para. 5.1)) not read out and recorded at bid
opening. In addition, attach copies of any evaluation reports for the other related
contracts awarded to the same bidder.
8. Provide detailed reasons for refusing to award a contract to a party other than the
lowest evaluated bidder (Section III, para. 5. 2)).
9. If an alternative bid is accepted, provide a detailed explanation of the reasons for its
acceptance, addressing issues of timeliness, performance, and cost implications
(Section III, para. 5. 3)).
10. An attachment to Table 10 should explain adjustments to the price provided on line 9,
“the Adjustment”. Explain any changes to scope of bid and contract conditions.
11. Attach copies of any letters to bidders requesting clarifications. Provide copies of
responses.
12. Submit bid evaluation with separate evaluation report from the consultant, if one was
commissioned.
13. Ensure that the bid evaluation report is double-checked, paginated, and complete, and
includes a letter of Request for Review and Concurrency by JBIC. JBIC will only
review reports that are sent to it by the proper authorities.
59
14. Send by courier or by other swift means.

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EVALUATION GUIDE

Procurement of Goods and Services

Japan Bank for International Cooperation

(Amended in January 2007)

Procurement Policy and Supervision Division

January 2007 amendment

In addition, Sample Forms for Prequalification Evaluation Report are incorporated

How to Use This Guide.................................................................................................1

Section I. Evaluation Principles............................................................................................3

Section II. Prequalification Evaluation................................................................................6

Section III. Bid Evaluation ..................................................................................................11

Annex I. Prequalification Evaluation Report Sample Forms.......................................29

Annex II. Bid Evaluation Report Sample Forms............................................................41

How to Use This Guide

2. JBIC issued Sample Prequalification Documents (SPD) and Sample Bidding

(a) Prequalification (PQ)

evaluation of prequalification and bid. JBIC encourages the employment of experienced

Section I. Evaluation Principles

2) Evaluation The evaluation organizations are expected to be set up by the

It is desirable that the Borrower clearly specifies the roles and

Members of the Evaluation Committee are to be selected in full

3) Role of When a consultant is employed for the purpose of assisting the

present to the Evaluation Committee.

In the case of difference of opinion, for evaluation results,

4) Record of It is desirable that the Borrower keeps a record of the

5) Auditing In order to secure transparency in the procurement procedure

6) Observation of The scheduled bid invitation date indicated on the

The scheduled award date indicated on the bidding documents

Box 1 Involvement of Consultants

Section II. Prequalification Evaluation

- To ensure that invitations to bid are extended only to

- To enable prospective bidders, who may be insufficiently

- To limit the number of bidders, in advance, to a

The prequalification procedure must be conducted strictly in

2) Eligibility The eligibility of the bidder is to be examined mainly on the

- The bidder must be from eligible source country as

- The bidder or any of its associates must be free from

- A firm shall submit only one bid either individually or as a

3) Evaluation It is desirable that the Prequalification Criteria are prepared at

4) Evaluation Stage-1, “Preliminary Examination”, is to assess the document

Stage-2, “Qualification Evaluation” is to examine whether

(1) General Experience

(2) Personnel Capabilities

management and specialist positions

(3) Equipment Capabilities

(4) Financial Positions

(5) Litigation History

5) Evaluation of The evaluation for joint ventures and consortium is to be

Joint ventures, consortium or sub-contracting arrangement for

7) Prequalification In principle, no bidder should be prequalified with

8) Limiting the It is not permissible to set a limit on the number of successful

Number of Applicants prior to the evaluation of prequalification. All

9) Review and The result of prequalification is subject to review and

Box 2 Contractors with Inadequate Capability for

Typical Prequalification Procedure for Contracts under JBIC ODA Loans

Stage-1 Preliminary Examination (pass-or-fail)

Section III. Bid Evaluation

2. Bidding Procedures under International Competitive Bidding

1) Single-Stage: In the Single-Stage: One-Envelope bidding procedure, the

2) Single-Stage: Single-Stage: Two-Envelope bidding procedure is applied in the

evaluate the technical proposals without reference to price. Bids

3) Two-Stage Two-Stage bidding procedure is applied in the case of turnkey

BID EVALUATION PROCEDURE