BUSINESS OPPORTUNITIES IN WORLD BANK FINANCED PROJECTS Bosnia and Herzegovina Monday, April 18, 2016
The World Bank Group Established in 1944 (together with the IMF) in Bretton Woods, first loan in 1947 5 entities (IBRD, IDA, IFC, MIGA, ICSID) Headquarters in Washington DC, 200 offices worldwide $60B engagement 25 000 employees (15 000 staff and 10 000 consultants) AAA Bank and Development institution Only active in emerging and developing economies 1
The World Bank Group: 3 Banks in 1 The Transaction Bank providing financing to exporters and investors The Knowledge Bank sharing 70 years of experience in emerging economies Talents providing global expertise through 14 Global Practices 2
to reach our overarching objectives: Ending Extreme Poverty Promoting Shared Prosperity 3
IBRD/IDA FY15 Lending Board Approved $42.5 billion In Fiscal 2015 Total Operations Lending Investment lending $23.5 billion IBRD lending $19.0 billion IDA support 4
Project Volume Distribution by Region Region # Projects Percentage Amount (US$M) Percentage AFR 137 40% 9,756.8 25% EAP 56 17% 6,312.7 16% SAR 41 12% 10,058.8 25% ECA 43 13% 5,527.2 14% MNA 21 6% 2,787.6 7% LCR 41 12% 5,068.4 13% Result 339 39,511.4 5
Top Major Sectors in FY15 by Contract Amount Transportation 41% Water/ Sanit/ flood 19% Energy and Mining 17% Transportation 41% Water/sanit/fld prot 19% Agriculture 5% Education 3% Energy & mining 17% Public admin, Law Finance 1% Health & social serv 7% Industry and Info & trade communication 1% 1% Millions $8.000 $7.000 $6.000 $5.000 $4.000 $3.000 $2.000 $1.000 $0 2010 2011 2012 2013 2014 Agriculture Education Energy & mining Finance Health & social serv Industry and trade Info & communication Public admin, Law Transportation Water/sanit/fld prot 6
Investment Project Cycle Country Assistance Strategy Evaluation Project Identification Project Supervision Project Preparation Implementation Project Appraisal Loan Approval and Signing Loan Negotiations Joint activity World Bank activity Borrower activity 7
General Considerations The Borrower is responsible for preparing and implementing the project, and therefore for selecting the consultant, and awarding and subsequently administering the contract. The Bank, for its part, is required by its Articles of Agreement (Bank s Articles of Agreement, Article III, Section 5(b); and IDA s Articles of Agreement, Article V, Section 1(g)) to ensure that the proceeds of any loan are used only for the purposes for which the loan was granted, with due attention to considerations of economy and efficiency and without regard to political or other non-economic influences or considerations, and it has established detailed procedures for this purpose. 8
The Roles in Bank-Funded Projects WORLD BANK COMPLAINTS of F&C ALLEGATIONS INVESTIGATIONS, AUDITS, SANCTIONS SUPPLIER/ CONTRACTOR/ CONSULTANT LOAN/ CREDIT/GRANT AGREEMENT IMPLEMENTING AGENCY (Borrowing Country Government) BIDDING/PROPOSAL DOCUMENTS, CONTRACTS, COMPLAINTS 9
Procurement Guidelines (January 2011, revised July 2014) I. Introduction II. International Competitive Bidding III. Other Methods of Procurement IV. Appendices Appendix 1: Appendix 2: Appendix 3: Review by the Bank of Procurement Decisions and Publication of Awards of Contracts Domestic Preferences Guidance to Bidders http://go.worldbank.org/u9ipsludc0 10
Consultant Guidelines (January 2011, revised July 2014) I. Introduction II. Quality- and Cost-Based Selection III. Other Methods of Selection IV. Types of Contracts and Important Provisions V. Selection of Individual Consultants VI. Appendices Appendix 1: Appendix 2: Appendix 3: Review by the Bank of the Selection of Consultants and Publication of Awards of Contracts Instructions to Consultants and Data Sheet of the RFP Guidance to Consultants http://go.worldbank.org/1kkd1knt40 11
Who can participate in WB financed tenders? Eligibility a) Firms & individuals from all countries with the capability and resources to successfully perform the contract are eligible. b) Exceptions: Prohibition of commercial relations between the borrowing country and the firm s country, as a matter of law or official regulation, if exclusion does not preclude effective competition. Compliance with a decision of the UN s Security Council under Chapter VII of Charter of the UN to prohibit import from or payment to a particular country, person or entity. Conflict of interest. State owned enterprises of the Borrowing country unless they are : (i) legally and financially autonomous; (ii) operate under commercial law; and (iii) are not under supervision by the agency contracting them. Firms and individuals sanctioned by the Bank or Borrower (if Borrower requests) for engaging in corrupt, fraudulent, collusive, coercive or obstructive practices. 12
A snapshot of the World Bank s Procurement website (http://web.worldbank.org/wbsite/external/projects/procurement/) 13
Procurement of Goods and Works Follow the procedures of the Procurement Guidelines Standard Biding Document (SBD) Variety of procurement methods, based on the estimated value, type and complexity of the contract 14
International advertising www.devbusiness.com and www.worldbank.org Standard Bidding Documents www.worldbank.org/procure Public bid opening Evaluation and comparison of bids 15
Contract awarded to lowest evaluated responsive bid Publication of the award of contract 16
Other Methods Limited International Bidding (LIB) National Competitive Bidding (NCB) Shopping Direct Contracting Direct invitation to suppliers Country s rules with some modifications if necessary Price quotations from at least three suppliers In exceptional cases, Reconstruction, spare parts, etc. 17
Basic Actions to Ensure Competitiveness Be informed about the country, project, processes, and competition Identify local partners and possible associations Understand local customs, laws, markets Respond adequately to technical specifications Submit timely and high-quality bid/proposals Contact the Implementing Agency to address any need for clarifications or other concerns(in writing) 18
Most Common Issues in Tenders Inappropriate bid securities, missingbid Securing Declarations Bidders trying to apply Public Procurement Law in World Bank funded tenders Requirements are misunderstood Incomplete bids, Conditional bids, or conditional discounts Submit bids late Bids not signed, no Letter of Bid included 19
Considerations during bid preparation All securities and guarantees must be unconditional and should have correct expiration date;and shall be in the form, amount, and validity as required in the bidding document. Time for preparation of bids: usually 6-8 weeks Advance payment is made against advance payment guarantee. In case of Joint Venture, the bid security (or bid securing declaration) shall be in the name of the Joint Venture, not in the name of the lead partner of the Joint Venture. 20
Considerations during bid preparation Separate securities in the name of each partner are not acceptable. The contract, the advance payment and performance guarantees shall be in the name of the Joint Venture. Ensure no conflict of interest. Read carefully the bidding documents and follow the criteria and rules established in the document. Check the technical specifications requiredand ask clarifications in writing in order to amend the bidding documents, if mistakes, discrepancies are identified 21
Considerations during bid preparation Make sure your bid is complete before submitting it. Avoid using ambiguous texts that can be interpreted in several ways which may render the bid non-responsive. It is the bidder s responsibility to provide adequate information and documentation to justify equivalency of standards and codes or equal or better specifications, failing of which the bid may be rejected. When submitting supporting catalogues it should be ensured that the details provided in the text of the bid indicating compliance with specifications are consistent with those in the catalogue, if not, the discrepancy should be explained. 22
Considerations during bid preparation In case of Pre or Post qualification, submit all documentation to substantiate qualification and experience and in the required format. Do not forget to sign the bid or all pages of the bid that the bidding documents requires to be signed including initials where corrections have been made. Ensure bids are properly sealed and marked; and submitted at the proper address. All documents must be submitted in original duly signed in indelible ink. 23
Selection of Consultants Follow the procedures of the Consultant Guidelines Standard Request for Proposal (RFP) Variety of selection methods, based on the estimated value, type and complexity of the contract 24
Short List Six firms with a wide geographic spread. No more than two from any one country. At last one firm from a developing country unless no qualified one is identified. Shortlist may comprise all national firms for smaller contracts under thresholds set by the Bank. All short listed firms must be qualified. 25
Consultants Strategy for the Short List Identify national partner firm, sub-consultants (optional). Monitor advertisements systematically. Express interest promptly, selectively. Expression of Interest (EOI): Brief information on firm s qualifications Relevant technical and regional experience Reference to previous similar assignments. 26
Preparing the Proposal Conduct a pre-proposal visit (if indicated in RFP). Fully address the Terms of Reference (TOR). Emphasize innovative methodology. Offer qualified consultants or key expert staff positions. Assign a strong project manager. Involve national partner consulting firm or individual consultants. Cite directly relevant technical and regional experience and prior experience with similar assignments. 27
Preparing the Proposal Avoid deviation from standard RFP forms. Contact the Implementing Agencyin writing to address any need for clarifications and concerns. In the proposal make sure that written consent of all staff named in the proposal to participate in the task has been obtained. 28
Preparing the Proposal CVs to be properly signed by each individual and also by the relevant official of the firm submitting the proposal. Promptly notify the client whether or not you will submit a proposal soon after receiving the letter of invitation from the client. Ensure to disclose any possible conflict of interest situation due to previous work carried out by the consultant or its staff or affiliates or for any other reason that will provide competitive advantage. 29
Preparing the Proposal Do not name more than one person for each key staff. Ensure the financial proposal is separate from the technical proposal and the latter does not contain any financial information. The financial proposal must be properly sealed so that evaluators do not have access to price information until technical evaluation has been completed. Follow up with your designated carrier until proposal has been received by the entity that invited proposal. 30
Consultants Have 3 Options 1. To work on WB-financed projects 2. To work for the WB as consultants https://wbgeconsult2.worldbank.org/ 3. To work for the PMU to prepare the projects. Option 1, 10 times bigger than Option 2 and 3!!! 31
How to Track Opportunities World Bank website www.worldbank.org Country Partnership Strategy Monthly Operational Summary Project Information Document Project Appraisal Document Contract Awards UN Development Business (UNDB) 32
Learn More Procurement website www.worldbank.org/procure Procurement & Consultants Guidelines Standard Bidding and Proposal Documents Guide to Business Opportunities Other information 33
Anti-Corruption Information Anti-Corruption Guidelines Guidelines on Preventing and Combating Fraud and Corruption in Projects Debarment List Procurement Website > List of Debarred Firms (left side of page) 34
Guidance to Bidders/Consultants APPENDIX 3 to the Guidelines Bidder s/ Consultant s Role 35
Complaints If bidders/consultants wish to raise issues or questions about the bidding/selection process, they may send the Bank copies of their communications with the Borrower, or they may write to the Bank directly when the Borrower does not respond promptly or when the communication is a complaint against the Borrower. All such communications should be addressed to the Task Team Leader for the project, with a copy to the Country Director for the borrowing country and to the Practice Manager for Procurement. Names of the Task Team Leaders are available in the Project Appraisal Document. Communications received by the Bank from bidders/short-listed consultants prior to the closing date for submission of the bid/proposal shall be, if appropriate, referred to the Borrower with the Bank s comments and advice for action or response. 36
Debriefing by the Borrower In the publication of contract award, the Borrower specifies that any bidder/consultant who wishes to ascertain the grounds on which its bid/proposal was not selected should request an explanation from the Borrower. The Borrower shall promptly provide in writing an explanation of why such bid/proposal was not selected. If a bidder/consultant requests a debriefing meeting, the bidder/consultant shall bear all their costs of attending such a debriefing meeting. 37
Debriefing by the Bank If after contract award, a bidder/consultant wishes to ascertain the grounds on which its bid/proposal was not selected, it should address its request to the Borrower. If the bidder/consultant is not satisfied with the written explanation given and/or debriefing by the Borrower, and wishes to seek a meeting with the Bank, it may address the Practice Manager for Procurement for the borrowing country, who will arrange a meeting at the appropriate level and with the relevant staff. The purpose of such meeting is only to discuss the bidder's bid/consultant s proposal, and neither to reverse the Bank s position that has been conveyed to the Borrower nor to discuss the proposals of competitors. 38
THANK YOU! any Q&A! 39