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7.5.3 Procurement: equipment and software<br />

All equipment should be procured according to Finnish Government procurement regulations. Those require restricted<br />

tendering with minimum three offers, if the price quotation is less than 15.000 euro. If it is more than 15.000 euro, open<br />

tendering should be launched in <strong>Nepal</strong> and in certain cases in EU countries. There are also requirements of the origin of the<br />

procured equipment to support <strong>Nepal</strong> or EU countries.<br />

However, it should be noticed that justified proposals of different origin could be realized, when maintenance, quality and<br />

sustainability aspects are supporting that. In general, all equipment and materials will be procured, either through restricted or<br />

open tendering process. It should also be noticed that procurement through local distributors provides that the Value Added<br />

Tax, VAT (13 %) should be paid. In international procurement that can be avoided.<br />

Following items will be procured for remote sensing, mapping and inventory work.<br />

1. equipment for inventory work including field computers and GPSs;<br />

2. 4WD vehicles appropriate for difficult terrain;<br />

3. motorcycles to provide cost-efficiency for local support ;<br />

4. computers;<br />

5. PC work stations;<br />

6. up-grade packages and equipment;<br />

7. image processing software licenses;<br />

8. software development tools;<br />

9. segmentation software (such as eCognition);<br />

10. programming services for tailoring/maintenance of IP/GIS<br />

11. software, especially, in ArcView GIS and Erdas Imagine environments;<br />

12. others, if any.<br />

Detailed list of equipment is given in detailed budget. Further refinement of procurement will be done during the project<br />

operation phage. Procurement will be done in two phases. First procurement package will be done during the first year.<br />

Second major update of equipment will be done in third or fourth year.<br />

The following services will be contracted out as per need:<br />

1. Field data collection<br />

2. Satellite data acquisition<br />

3. Ortho-rectification and color-balancing<br />

4. Outlines of scope for procurement procedures<br />

5. Formation of a Procurement Group<br />

6. Preparation of tender documents<br />

7. Advertising of tenders<br />

8. Issuing of tender documents<br />

9. Receipt of completed tender documents and storage until to Procurement Group meeting will be organized.<br />

10. Opening of tenders and selection of successful tenders. Submitting Tender Opening Report to the Embassy of<br />

Finland<br />

11. Installations of equipment.<br />

Procurement processes should be started immediately after the beginning of the Project. The first phase of the procurement<br />

should be finished after 6 months.<br />

7.5.4 Budget<br />

The project is bilateral cooperation between governments of Finland and <strong>Nepal</strong>. The Finish government will provide 4.7<br />

million Euros as grant money and input from GoN is 880 000 Euro. The total budget for the project is 5.6 million Euro. Table<br />

5 shows the general project budget and the details of the project budget are presented in Annex B.<br />

7.5.4.1 Budget sharing<br />

The practice of sharing the inputs between the governments of <strong>Nepal</strong> and Finland will be defined as follows:<br />

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