CONTRACT DESCRIPTION: Rehabilitation of runway, approns and related infrastructure for Bauerfield Airport, Port Vila Vanuatu (Lot-1).

CONTRACTOR JV China Civil Engineering Construction and Northwest Civil Aviation Airport Construction Company (JV CCECC/NCAACC)

COUNTRY China

CURRENCY USD

AMOUNT 47,660,000

Design and build for Santo-Pekoa and Tanna White Grass short term runway repairs (Lot-2). USD: 11, 390 000.

In providing this no objection to your recommendations for award of contract for Lot-1, the bank as taken note of the following based on documentation in the BER of March 23, 2017 and BEC's letter of March 29,2017: the BEC determined the bid submitted by by JV-Shanghai Construction Group Co.Ltd and Beijing Jongold Construction Co.Ltd (JV SCG-BJC) (China) and the bid submited by China Railway First Group (China) to be substantially non-responsive and or not fully meeting the qualification criteria. The BEC also determined the next higher priced bidder JV CCECC/NCAACC to be fully compliant and qualified based on the requirements of the bidding documents. The BER includes the explicit statement "based on the above and after positive determination of the bidder's technical responsiveness and the qualifications, the bid of CCECC-NCAAC has been determined lowest priced technically responsive and qualified bid for Lot 1".

In relation to Lot-2, we note that BEC determined the bid submitted by Downer EDI Works Vanuatu was substantially non-responsive. The bank's "no objection" is conditional to the confirmation by MIPU that next higher bidder, JV CCECC/NCAAC is fully qualified to undertake both contracts in accordance with the qualification criteria defined in the bidding documents".

The signing of the contract between World Bank and the Vanuatu government is scheduled for next week at National Convention Center in Port Vila. The Deputy Prime Minister, Joe Natuman, the minister of MIPU, Jotham Napat and the minister of finance, Gaetan Pikioune and senior government officials were also present this morning at Holiday Inn.

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