How to do business under EBRD financed projects

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How to do business under EBRD financed projects

• Ian Nightingale
• Deputy Director
• Procurement and Purchasing Department

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What is the EBRD?

• International financial institution, promotes
  transition to market economies in 27 countries
  from central Europe to central Asia
• Owned by 60 countries and two inter-governmental
  institutions
• Capital base of 20 billion

Cumulative commitments 28.4 billion
Unaudited September 2005
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What are the EBRDs objectives?

• To promote transition to market economies by
  investing mainly in the private sector
• To mobilise significant foreign direct investment
• To support privatisation, restructuring and
  better municipal services to improve peoples
  lives
• To encourage environmentally sound and
  sustainable development

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Shareholding of the EBRD
Japan 8.6
USA 10.1
EBRD region 8.6 excl EU members
Others 13.8
EU 25 countries 58.9
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Foundations of EBRD operations

• 1 Apply sound banking principles to every project
• 2 Support but not replace private investors
• 3 Advance the transition to a full market economy

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29 offices in 26 countries of operations
Albania ? Armenia ? Azerbaijan ? Belarus ? Bosnia
and Herzegovina ? Bulgaria ? Croatia ? Czech
Republic ? Estonia ? FYR Macedonia ? Georgia ?
Hungary ? Kazakhstan ? Kyrgyzstan ? Latvia ?
Lithuania ? Moldova ? Poland ? Romania ? Russian
Federation ? Slovak Republic ? Slovenia ?
Tajikistan ? Turkmenistan ? Ukraine ? Uzbekistan
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EBRD Projects

• EBRD projects are classified for procurement
  purposes. Projects are either
• Private sector (Majority of projects)
• Public Sector

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EBRD Projects (Private Sector)

• Bank to Bank Lending
• Manufacturing, Processing, Telecom, MediaGas
  Oil Industries
• PPP concessions
• SME and MSE Financing
• Trade Finance

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EBRD Project Profiles (Public Sector)

• Generally large value gt USD10 million up to USD
  400 m
• Transport Infrastructure
• Roads, Airports, Ports, Railways
• Municipal
• Wastewater/Water Treatment, Landfill, Transport
• Power Energy
• Power stations, power distribution energy
  efficiency
• Nuclear
• Safety upgrades, Waste processing,
  Decommissioning

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Transport Projects
Bosnia Herzegovina Railways Rehabilitation 21
million
Kazakhstan Atyrau Road Rehabilitation USD 95
million
Russia Sirocco Aerospace USD 36 million
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Loan funded public procurement for Goods,
Supply and Install Works contracts
m
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Funding of consultant services
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Value of contracts by sector in 2004 ()
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EBRDs Procurement Policies and Rules

• Detailed rules for public sector
• open tendering the norm and aligned to WTO
• Policies and objectives for private sector
• Follow normal acceptable commercial practices
• Consultant services
• Competitive selection
• Guidance to Tenderers

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The Clients role during implementation

• The client is responsible for all aspects of the
  procurement of contracts. It invites, receives
  and evaluates tenders and awards contracts which
  in all cases are concluded between the client and
  the supplier or contractor

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The Banks role during implementation

• Public Sector Operations
• The Bank reviews and monitors the clients tender
  process and contract administration to ensure
  that procurement is carried out in accordance
  with agreed procedures. The Bank reviews
  complaints
• Private Sector Operations
• The Bank undertakes due diligence and monitors
  contract administration to ensure that fair
  market prices are obtained

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www.ebrd.com
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Top Ten Reasons for failing to win tenders(other
than non responsive price and product)

• Insufficient time allowed for Tender preparation
• Tender not signed
• No Tender Security
• Insufficient tender validity
• Changing JV partner at the last minute or picking
  the wrong partner
• Not asking for clarifications

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Top Ten Reasons for failing to win tenders

• Poor quality of presentation
• Objecting to commercial conditions
• Qualification reference projects are
  inappropriate
• Attempting to influence outcome of evaluation

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What to do if you are unsuccessful

• Contact client and request de-briefing
• If the de-briefing is unsatisfactory contact the
  Director of Procurement at the EBRD. Copy your
  correspondence to your countrys Executive
  Directors office
• De-briefing by the Bank can be offered but will
  only concern the shortcomings of your offer.
• If you wish to register a complaint about the
  tender process it should be forwarded to the
  client and copied to the Banks operational
  leader for the project, the Director of
  Procurement and the Executive Directors office.

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What to do if you are unsuccessful

• The complaint will be reported to the Banks
  Procurement and Contracting Committee and will be
  subject to review.
• If you suspect fraud and corruption you can also
  contact the Director of Procurement or phone the
  Banks confidential Hotline. Cases of fraud and
  corruption will be handled by the Office of the
  Chief Compliance Officer.