Overview of the IDB

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A Conference on Providing Solutions and Creating
Opportunities for U.S. Companies at the
Multilateral Development Banks
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• AFRICAN DEVELOPMENT BANK MDB INTRODUCTION

GENE R. HARRIS, SENIOR ADVISOR
TRADE ADVOCACY MULTILATERAL DEVELOPMENT BANK
CENTER/ SCO (TEMPORARY DESIGNATE), AfDB OPEN T
HE BANKS A Conference on Providing Solutions a
nd Creating Opportunities for U.S. Companies at
the Multilateral Development Banks
U.S. Department of Commerce Washington, D.C. Apr
il 25, 2005
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International Trade Administration (ITA)
Reorganization and Multilateral Development Bank
Operations

• Review New Changes to MDB Operations
• Aggressive Program Track, Alert, Encourage,
  Assist, Advocate, Report
  
• MDBs Funding Represents Billions of Commercial
  Opportunities
  
• Review AfDB
• Introduction to MDB funding

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An Office in the Commercial Service
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New Organization
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• Est. 1964, first loan 1967
• Largest investor in infrastructure social
  development in Africa
  
• Approves 2-3 billion annually
• AfDB and World Bank mobilize 8 billion per year
  for Africas development

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• Owned by 77 member countries, 53 are African and
  24 non-African
  
• Located in Tunis, Tunisia (Temporary)
• U.S. joined AfDB in 1983
• U.S. is third largest shareholderwith 6.6
  percent in shares
  
• U.S. Procurement very low
• Enhanced Procurement OutreachProgram

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• The AfDB Group Consists of Three Institutions
• African Development Bank w/ Private Sector
  Department
  
• African Development Fund
• Nigeria Trust Fund

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The African Development Bank
AfDB FINANCES PUBLIC SECTOR PROJECTS IN COUNTRIES
THAT ARE CREDIT WORTHY

• Financing Instruments
• Projects Loans
• Sector Investment Loans
• Lines of Credit
• Sector Adjustment Loans
• Structural Adjustment loans

AfDB ALSO FINANCES THE PRIVATE SECTOR
AfDB LOANS 1967 - 2003 38.4 Billion
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AfDB PRINCIPAL FUNCTIONS

• Make Loans and Equity Investments for the
  Economic and Social Advance of Borrowing
  Countries in Africa
  
• Provide Technical Assistance in Preparation and
  Execution of Development Projects Programs
  
• Promote Investment of Public Private Capital
  for Development Purposes
  
• Respond to Requests for Assistance in
  Coordination Development Policies and Plans in
  Borrowing Countries
  
• Support National and Multinational Projects and
  Programs which promote Regional Integration
  

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The African Development Bank
The New Vision
The Banks New Vision for Africas Development
Agriculture
Private Sector
Governance
Gender
Environment
Rural Development
Human Capital
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AfDB FOCUS ON SEVERAL SECTORS

• Agriculture
• Public Utilities
• Energy
• Manufacturing
• Transportation
• Infrastructure
• Industry Extractive Industries
• Banking Finance
• Health Education
• Social Reform
• Good Governance
• Tourism Other Service Industries

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African Development BankOPERATIONAL ACTIVITIES
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African Development BankLoan Grant Approvals
by Sector, 2003
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International MarketingStrategy

• Essential Large and SMEs
• Examine strengths/weaknesses targeted markets
• Market penetration budget
• Assets State Gov., U.S. Commercial Service
  USEAC Overseas, USDOC, USTDA, OPIC, ExImBank,
  USAID, etc.
  
• MDB Hard Currency financing Other IFIs, UN,
  Etc.
  
• Shoe Leather Callused fingers

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Opportunities What, Where, How How to Access
the Opportunities

• Learn About the Banks
• Learn the Project Cycle/Get into the Pipeline
  early!
  
• Learn the Procurement Rules
• Find Local Representation
• Focus on Relationships - Network!

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• Multilateral Bank Websites
• www.worldbank.org
• www.iadb.org
• www.adb.org
• www.ebrd.com
• www.afdb.org
• www.nadbank.org

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Project Cycle
Negotiation Approval
Execution Supervision
Analysis Dev.
Programming
Identification
Preparation
Borrower Bank
Borrower Bank
Borrower
Bank
Borrower Bank
Borrower Bank
4-8 Years
1-2 Years
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Opportunities What, Where, How GET INTO IDBS
PIPELINE

• BUSINESS/PROCUREMENT BRIEFINGS
• UN DEVELOPMENT BUSINESS (212-963-1381)
  orwww.devbusiness.com
  
• WWW.MDB
• REGISTER Data on Consultants System (DACON)
  Robert Wilson, World Bank (202-522-3901)dacon_at_dgm
  arket.com orwww.dgmarket.com/dacon/
  

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Opportunities What, Where, How MDB - PROCUREMENT

• MDBs Make Rules with the goal PROVIDE GOODS
  SERVICES TO BORROWERS AT LOWEST COST, TIMELY
  DELIVERY APPROPRIATE QUALITY QUANTITY
  
• Borrower Procures (Executing Agency)
• Bidding Documents govern relationship between
  Bidder and borrower - Follow them to the letter.
  
  
• NO SPECIFIC MDB PROCEDURES BELOW THRESHOLDS

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Opportunities What, Where, How NETWORKING WITH
DECISIONMAKERS -YOUR KEY TO SUCCESS

• EXECUTING AGENCY
• MDB PROJECT TEAM
• MDB COUNTRY OFFICE
• NATIONAL GOVERNMENT
• U.S. COMMERCIAL SERVICE CS-MDB/CS-IN-COUNTRY,
  USEAC, TA MDB CENTER
  
• TDA, OPIC, EXIMBANK

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Opportunities What, Where, How The Commercial
Service Network Support for U.S. firms

• Project identification, tracking
• Contact/partner identification
• Counseling, Guidance
• Advocacy
• Support in procurement disputes
• Local resource support

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Opportunities What, Where, How THE POWER STAR
MDB/HQ
MDB Country Office
MDB Projects WWW.MDB
Executing Agency
State Govt/ WTC/DEC
CS/USEACs ADVOCACY CENTER
CS/OVERSEAS POSTS
CS/MDD
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Opportunities What, Where, How Find a Local
Representative

• Essential for Local Networking
• Remember - Borrower Procures
• Use the Commercial Service Network to identify
  potential partners.

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Secrets of Bidding

• Read bid documents carefully - BIDDER is
  responsible for finding irregularities
  
• Dont make Assumptions - make sure you can comply
  fully with ALL requirements
  
• Ask Borrower to Clarify

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Secrets of BiddingProblems with the Specs?

• Let the Borrower Know
• Let the MDB Know
• Let CS/MDB Know
• RIGHT AWAY -not after the bid opening

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More Secrets of Bidding

• Bid Validity and securities for requested amount
  of time (usually 90 some extra)
  
• No extra credit - follow specs
• No bait or switch
• No contingencies
• Prepare boiler plate ahead

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TIPS

• FOLLOW PROJECT THROUGH CYLCLE -START EARLY
• FOCUS EFFORTS
• LEARN THE COUNTRY PRIORITY
• OFFER THE SOLUTION
• LOCAL PARTNERS
• SPEAK THE LANGUAGE
• DRINK THEIR BEER

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Six Most Important Items for Success

• Network
• Network
• Network
• Follow up
• Follow up
• Follow up

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U.S. Commercial Service Liaison to the African
Development Bank
Ron Soriano, Senior Commercial Officer (E-Mail
Ron.Soriano_at_mail.doc.gov U.S. Commercial Liai
son Office (AfDB) African Development Bank Offic
e of the U.S. Executive Director
ATR BAD Angle des 3 rues du Ghana, Hedi Nouira
et Pierre de Coubertin B.P. 323 1002 Tunis Belve
dere, Tunisia Tel [phone] Fax (216)
71-830-244
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TRADE ADVOCACY MULTILATERAL DEVELOPMENT BANK
CENTER
Gene Harris, Senior Advisor/ Senior Commercial
Officer (E-Mail Gene.Harris_at_mail.doc.gov)
The Trade Advocacy MDB Center International T
rade Administration U.S. Department of Commerce
14th and Constitution Ave., NW Washington,
D.C. 20230 Tel [phone] Fax (202)
482-3508
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A Conference on Providing Solutions and Creating
Opportunities for U.S. Companies at the
Multilateral Development Banks