Bernard BECQ

Report
Procurement Seminar
TURKEY-Istanbul
April 2010
B BECQ
Chief Procurement Policy Officer
World Bank
World Bank
Lending
Lending, Trends
&
Project Development Cycle
Working for a world free of poverty
IBRD/IDA Lending in FY2009

301 operations
 IBRD 125 (42%)
 IDA 176 (58%)

$46.4 billion
 IBRD $32.8 billion (71%)
 IDA $13.6 billion (29%)
3
FY09 Top Ten IBRD / IDA Borrowers
Country
Indonesia
Brazil
Mexico
Poland
China
India
Kazakhstan
Turkey
Argentina
Pakistan
Total
IDA / IBRD
Commitment
Amount ($M)
4,225.0
3,604.2
3,422.8
2,550.2
2,360.0
2,242.4
2,125.0
2,075.1
1,840.0
1,609.7
26,054.40
Total Share of
IDA / IBRD
Commitment
9.1%
7.8%
7.4%
5.5%
5.1%
4.8%
4.6%
4.5%
4.0%
3.5%
56.3%
4
Basic Lending Instrument
Investment Lending






For goods, works and services
Predefined specific project
Long-term focus (5 to 10 years)
broad range of sectors
Procurement and implementation schedule defined
75 - 85 percent of all Bank lending
Development Policy Lending
Support countries’ policy and institutional
reforms in a sector or the economy as a whole
 Short-term focus (1 to 3 years)
 Provide quick-disbursing financing
 15 - 25 percent of total Bank lending

IBRD/IDA FY2009 Lending by
Lending Instrument
Total Operations Lending
$46.4 billions

Investment lending
– $28 billion
– 60% of the total

Development Policy
– $18.4 billion
– 40% of the total
Trends
Top sectors by loan amount in FY2009
Economic Policy
8,939.2
Social Protection
6,202.3
Transport
5,711.3
Energy and Mining
4,646.7
Environment
3,829.0
Agriculture and Rural Development
3,570.6
Financial and Private Sector Development
2,924.0
Public Sector Governance
2,357.3
Education
2,353.1
Urban Development
2,053.1
Working for a world free of poverty
Trends – FY09 Lending by Major Sector
Social Development
Global
1% Poverty
Financial
Information/Communicati
Health, Nutrition
ons Technology
Reduction Management
and Population
0%
1%
1%
3%
Urban Development
Water
4%
3%
Economic Policy
19%
Education
Public Sector
5%
Governance
5%
Financial and
Private Sector
Development
6%
Social Protection
13%
Agriculture and Rural
Development
8%
Environment
8%
Transport
12%
Energy and Mining
10%
8
IBRD/IDA FY09 Lending Project
by Operations Region
# Proj
%
%
AFR
99
33%
Amount
7,802.9
EAP
40
13%
8,152.7
18%
SAR
36
12%
5,433.6
12%
ECA
48
16%
9,284.8
20%
MNA
14
5%
1,723.0
4%
LCR
64
21%
14,031.0
30%
301
17%
46,428.02
9
Investment Project Cycle
Country Assistance Strategy
Project Identification
Evaluation
Project Supervision
Project Preparation
Implementation
Project Appraisal
Loan Approval and Signing
Joint activity
Loan Negotiations
World Bank activity
10
Borrower activity
Bank-Financed
Procurement
Working for a world free of poverty
Procurement
in the Bank’s Lending

Investment projects/programs

Management and reform of public
procurement system in borrower
countries
12
Top Ten Supplier Countries* by
Major Bank-financed Contracts
FY / Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Portfolio
*
2005
China
India
Argentina
Egypt
UN Agency
France
Russia
Germany
Brazil
United Kingdom
60%
2006
China
India
Brazil
Russia
France
Germany
Denmark
UN Agency
Pakistan
United States
54%
2007
China
India
Germany
United Kingdom
Italy
Argentina
Russia
Vietnam
Turkey
Indonesia
2008
2009
China
India
Spain
Brazil
Argentina
Russia
Vietnam
Italy
France
Indonesia
China
India
Argentina
Vietnam
Italy
Brazil
Turkey
Iran R
Nigeria
Indonesia
65%
59%
58%
Countries where suppliers/contractors registered.
Major Contracts* Financed by the World Bank
Top major Sectors in FY09 by Contract Amount
Transportation: 42%
Energy and mining: 18%
Water and sanitation: 15%
Public admin, Education Finance
2%
Law
3%
5%
Health &
social serv
10%
Water/sanit/fl
d prot
15%
Industry and Info &
trade communicatio
1%
n
Not assigned
0%
0%
FY09
Energy &
mining
18%
Transportation
42%
Trends by Major Sector
Billions
Agriculture
4%
6.00
Transportation
5.00
Energy & mining
4.00
3.00
Water/sanit/fld
prot
2.00
Health & social
serv
1.00
Public admin, Law
0.00
2005 2006 2007 2008 2009
Agriculture
Top Major Sectors in FY09
by Number of Contracts
1. Health & social services: 1,148 (18%)
2. Public admin., law: 1,015 (16%)
3. Transportation: 892 (14%)
Public admin,
Law
16%
Agriculture
12%
Water/sanit/fl
d prot
14%
Transportation
14%
Trends by Major Sector
No. of Contracts
Hundreds
Industry and
Info &
Not assigned
Finance
trade
communicatio
0%
2%
n
Education 3%
1%
8%
Energy &
Health & social
mining
serv
12%
18%
16
14
12
Health & social
serv
10
Public admin, Law
8
6
Transportation
4
Water/sanit/fld
prot
2
0
2005 2006 2007 2008 2009
The Bank’s Role

Identify project/program

Appraise project/program and assess risk

Share knowledge and information

Supervise project/program

Monitor Compliance with Agreements
Working for a world free of poverty
The Borrower’s Role

Identify project/program

Design, prepare and plan the
project/program

Apply for the loan/credit

Implement project/program

Monitor Compliance with Agreements
Working for a world free of poverty
The Bank’s Role in Procurement

Assess country system, project’s
procurement capacity and potential risks

Assist borrower in procurement planning

Provide procurement training/ knowledge
sharing

Monitor compliance with loan/credit
agreement and procurement plan
– Prior review, Post review, Independent review

Translations
Working for a world free of poverty
The Borrower’s Role in Procurement







Design procurement plans
Prepare and issue bidding documents
Invite bids
Receive and evaluate bids/proposals
Award contracts
Implement/ contract payment
Monitor compliance with loan/credit
agreement and procurement plan
- Audit
Working for a world free of poverty
Contractual
Relationships
LOAN/CREDIT AGREEMENT
WORLD BANK
IMPLEMENTING AGENCY
(Borrowing Country Government)
SUPPLIER/
CONTRACTOR
BIDDING DOCUMENTS/ CONTRACTS
20
Working for a world free of poverty
Procurement Guidelines
(May 2004, Revised October 2006)
Goods and Works
I.
II.
III.
IV.
Introduction
International
Competitive
Bidding
Other Methods of
Procurement
Appendices
Consulting Services
I.
II.
III.
IV.
V.
VI.
Introduction
Quality- and Cost-Based
Selection
Other Methods of
Selection
Types of Contracts and
Important Provisions
Selection of Individual
Consultants
Appendices
Working for a world free of poverty
Fraud and Corruption
Parties expected to observe highest ethical
standards
 Bank reserves the right to audit firm’s accounts
and records of the contract

 Sanctions
by Bank:
 Will reject proposal for award
 Cancel the portion of the loan
 Declare firm ineligible for a limited period of time or
indefinitely
 List of debarred firms will be posted on the World Bank
website:
http://www.worldbank.org/debarr
Working for a world free of poverty
Anti-corruption Hotline
Department of Institutional Integrity (INT)
Toll-free: 1-800-831-0463 (24 hours/day)
Collect call: 704-556-7046
By mail:
PMB 3767
13950 Ballantyne Corporate Place
Charlotte, NC 28277, USA
Phone: 202-458-7677 Fax: 202-522-7140
E-mail: [email protected]
Website: www.worldbank.org/integrity
Click on "Online Complaint Form"
Anonymous calls are accepted.
Please be as specific as possible.
Working for a world free of poverty
Procurement of
Consulting Services
Working for a world free of poverty
Scope of Business Opportunities for
Consultants in World Bank Projects

Study, Design, Supervision
of Projects

Technical assistance and
Institutional strengthening
Working for a world free of poverty
Bank Guidelines For
Consultant Selection

Public notification for large assignments

Restricted competition

Standard Request for Proposals

Different selection methods are specified in
the loan agreement
Working for a world free of poverty
Selection Methods
 Quality-
and Cost-Based Selection
(QCBS)
 Quality-Based Selection (QBS)
 Fixed Budget (FBS)
 Least Cost Selection (LCS)
 Consultants’ Qualifications (CQS)
 Single
Source Selection (SSS)
Working for a world free of poverty
Borrower’s Role
 Short
lists, invites and selects
 Negotiates and contracts
 Supervises, and makes payments
Working for a world free of poverty
Short List

Six firms with a wide geographic spread

No more than two from any one country

Shortlist may comprise all national firms
for smaller contracts.

All short listed firms must be qualified

Participation of national consultants
encouraged
Working for a world free of poverty
Consultants’ Strategy

Target assignments based on regional
experience and technical qualifications

Obtain background information on
project:




Country Assistance Strategy (CAS)
Sector Strategies
Project Information Document (PID)
Project Appraisal Document (PAD)

Understand Roles of Borrower and Bank

Target marketing at appropriate time
Working for a world free of poverty
Making the Shortlist
Identify national partner firm,
consultants
 Monitor advertisements systematically
 Express interest promptly, selectively
 Expression of Interest (EOI):



Brief information on firm’s qualifications
Relevant technical and regional experience
31
Working for a world free of poverty
Preparing the Proposal

Address the Terms of Reference (TOR)
clearly, comprehensively

Emphasize innovative technical
solutions

Qualified Consultants in Key Staff
positions

Firm Provides Strong Technical
Leadership
32
Working for a world free of poverty
Preparing the Proposal
Cite directly relevant technical and
regional experience
 Involve national partner consulting firm
or individual consultants
 Do not vary from standard RFP forms
 Make sure that your proposal is carefully
prepared and easy to evaluate: use
charts, diagrams, color
 Submit a professional and polished
proposal

33
Working for a world free of poverty
Procurement of
Goods, Works and
Services
Working for a world free of poverty
International Competitive Bidding
(ICB)
 International
advertising
– UNDB online and Development
Gateway’s dgMarket
 Standard
Bidding Documents
– Website: www.worldbank.org
 Public
bid opening
 Evaluation and comparison of bids
35
International competitive bidding
(ICB)
 Contract
awarded to lowest
evaluated “responsive bid”
 Publication
of the award of contract
 Domestic
Preferences under ICB
Appendix 2
36
Other Methods

LIB - Limited International Bidding
•

NCB - National Competitive Bidding
•

Country’s rules with some modifications if
necessary
Shopping
•

Direct invitation to suppliers
Price quotations from at least three suppliers
Direct Contracting
•
Reconstruction, spare parts, etc.
37
Other Methods

Force Account
•

Performance-Based Procurement
•

use of the borrower’s own personnel and
equipment
Payments made for measured outputs
Community Participation in Procurement
•
For project sustainability or specific social
objectives
38
Business
Opportunities
Working for a world free of poverty
How to Track Opportunities

World Bank website www.worldbank.org
•
•
•
•
•
•
•
•
Country Assistance Strategy
Sector Support Strategy
Monthly Operational Summary
Project Information Document
Project Appraisal Document
Contract Awards
UN Development Business (UNDB) &
dgMarket (fee-based online services)
REOI for consultants hired by World Bank
40
Trends in Major Awards to Turkish Suppliers –
FY 2005-2009 by Category (in US$ Millions)
41
Trends in Major Awards to Turkish Suppliers –
FY 2005-2009 by Region (in US$ Millions)
42
Trends in Major Awards to Turkish Suppliers –
FY 2005-2009 by Sector (in US$ Millions)
43
Learn more
www.worldbank.org/procure
Procurement & Consultants
Guidelines
Standard Bidding and Proposal
Documents
Guide to Business Opportunities
and more!
Working for a world free of poverty
Guidance to Bidders
Appendix 3 of the Guidelines





Bidder’s role
Address all queries or complaints to the client - the
borrower
Send copies of communications to the Bank or write to
the Bank directly, when borrowers do not respond
promptly, or the communication is a complaint against
the borrower.
Address to World Bank Task Team Leader, copy to
Country Director and Regional Procurement Manager
Bidders may request a debriefing
Working for a world free of poverty
How to win - briefly
 Read
everything you can
 Learn country laws and regulations
 Identify local partners
 Respect local customs
 Solve the client’s problem. Don’t
impose your view.
46
Working for a world free of poverty
How to win - briefly
Respond precisely to technical
specifications.
 Unclear? Ask in writing, do NOT guess
or assume.
 Submit bid/proposals in time. Bids that
are even one minute late will be
rejected.
 Assess the competition. Compete where
YOU are competitive.

47
Working for a world free of poverty
Thank You!
Questions and
Answers
48

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