WORLD BANK

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WORLD BANK
Procurement Seminar
Nadjib Sefta - Nov. 3/4/5 2004 Bilbao / Madrid /
Sevilla
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The World Bank Group

• International Bank for Reconstruction and
  Development (IBRD) 1945
• International Development Association (IDA) 1960
• International Finance Corporation (IFC) 1956
• Multilateral Investment Guarantee Agency (MIGA)
  1988
• International Centre for Settlement of
  Investment Disputes (ICSID) 1966

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FUNCTIONS OF THE WORLD BANK

• To provide funds for development projects
• To provide policy advice and technical assistance
• To promote investment in developing countries

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The World Bank

• The first loans helped finance the reconstruction
  of the war-ravaged economies of Western Europe
  and Japan after World War II.
• Today the Bank lends to the developing countries
  of Africa, Asia, Central Europe, Latin America,
  the Middle East and the former Soviet Union.

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The World Bank

• Loans, credits, or grants are provided to the
  governments of developing countries borrowers
  to finance investments and promote economic
  growth through
• Investment projects/programs
• Support to policy/economic reform
• Technical assistance

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IBRD
Borrowings, Retained earnings, Paid-in
capital. 15-25 years with 3-8 year grace
period. LIBOR plus fixed or variable
spread. Member countries with annual per capita
GNP between 895 - 5,295 Governments,
government agencies, and private enterprises
with GOVERNMENT GUARANTEE. FY2004 11.0 billion
for 87 new operations.
FUNDING TERMS ELIGIBILITY RECIPIENTS LEN
DING COMMITMENTS
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IDA
Contributions from governments and IBRD
income 35-40 years with 10 year grace period.
0 interest. Service charge of 0.75 on the
disbursed balance. Grants. Member countries with
an annual per capita GNP below 895. Governments,
but funds may be on-lent to state or
private organizations. FY2004- 9.0 billion for
158 operations.
FUNDING TERMS ELIGIBILITY RECIPIENTS LEN
DING COMMITMENTS
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IBRD LOANS and IDA CREDITS

• Administered by the same staff.
• Projects must meet the same criteria to qualify
  for financing.
• Same procedures apply for the procurement of
  goods and works.
• Same procedures apply for selection of
  consultants.

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BOARD OF GOVERNORS made up of the Minister of
Finance, or equivalent of each of the Banks
184 member countries
EXECUTIVE DIRECTORS 24, representing
the constituencies of the 184 member countries
THE PRESIDENT MANAGING DIRECTORS
OPERATIONS EVALUATION STAFF
VICE PRESIDENTS, OPERATIONS, FINANCE, LEGAL, etc.
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World Bank Lending

• Trends Project Development Cycle

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Trends

• Increase in program-based lending to support
  development of economic sector Health,
  Education, Infrastructure, etc.
• Emphasis on the creation of capacity in
  countries public sector management, community
  participation
• Decrease in agriculture, transportation and
  energy sectors
• Smaller contract size more contracts awarded to
  local firms

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IBRD/ IDA LENDING, BY REGION Fiscal Year 2004
(July 1 - June 30) 20.1 Billion
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IBRD/IDA Lending by Sector FY04
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TYPES OF OPERATIONS

• Investment Projects
• Predefined specific project
• Procurement and implementation schedule defined
• Development Policy Support
• Policy and economic reform
• General imports, (negative or positive list)
• Program Operations
• Multi-year investment program
• Investments not precisely pre-defined

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COUNTRY ASSISTANCE STRATEGY
IMPLEMENTATION COMPLETION REPORT
PROJECT IDENTIFICATION
PROJECT PREPARATION
PROJECT SUPERVISION
IMPLEMENTATION
PROJECT APPRAISAL
LOAN APPROVAL, SIGNING AND EFFECTIVENESS
LOAN NEGOTIATIONS
Joint activity
Client activity
Bank activity
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OPERATIONS STAFF
Vice President Middle East North Africa
Vice President East Asia Pacific
Vice President Europe Central Asia
Vice President Latin America Caribbean
Vice President South Asia
Vice President Africa
RPM
RPM
RPM
RPM
RPM
RPM
Country Directors
Country Directors
Country Directors
Country Directors
Country Directors
Country Directors
Country Director
Sector Managers
RPM Regional Procurement Manager
Sector Managers
Task Team Leaders
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Bank-Financed Procurement
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THE BANKS ROLE

• Lend for Specific Projects
• Appraise Projects and Assess Risk
• Assist the Borrower
• Provide Information on Projects
• Monitor Compliance with Agreements

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THE BORROWERS ROLE

• RESPONSIBLE FOR PROCUREMENT
• Prepares Procurement Plan
• Prepares and issues Bidding Documents
• Invites Bids
• Receives and Evaluates Bids/proposals
• Awards Contracts
• Implements

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BANKS PROCUREMENT REVIEW

• PROCUREMENT PLAN
• SCHEDULING
• PRIOR REVIEW
• MODIFICATIONS
• POST REVIEW
• TRANSLATIONS

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CONTRACTUAL RELATIONSHIPS
LOAN/CREDIT AGREEMENT WORLD
BANK IMPLEMENTING AGENCY
(Borrowing Country Government) SUPPLIE
R/ CONTRACTOR PREQUALIFICATION BIDDING
DOCUMENTS/CONTRACTS
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CONSIDERATIONS THAT GUIDE WORLD BANK
PROCUREMENT POLICIES

• Need for economy and efficiency
• Give all eligible (qualified) bidders opportunity
  to compete
• Encourage development of national industries in
  borrowing countries
• Procurement process to be transparent

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Procurement Guidelines

• Goods and Works
• Introduction
• International Competitive Bidding
• Other Methods
• Appendices

• Consulting Services
• Introduction
• Quality- and Cost-Based Selection
• Other Methods
• Types of Contracts and Important Provisions
• Appendices

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Guidance Appendix 3

• Address all queries or complaints to the client -
  the borrower
• Copy queries/complaints to World Bank sector
  director and Regional Procurement Manager
• Write to your embassy in borrowers country or
  commercial attaché in Washington to expedite
• Bidders may request a debriefing

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Fraud Corruption Provisions Guidelines (Para
1.14 or 1.22)

• Corrupt Practice
• Offering, giving, receiving or soliciting of
  anything of value
• Fraudulent Practice
• Misrepresentation of facts
• -- to influence the procurement process or
  contract execution

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Fraud and Corruption

• Parties expected to observe highest ethical
  standards
• Bank reserves the right to audit firms 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

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Anti-corruption Hotline Number

• The World Banks Hotline for reporting
  allegations of fraud and corruption can be
  reached outside of the United States and Canada
  by contacting an ATT operator and asking for the
  Banks toll-free hotline number
• 1-800-831-0463

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PROCUREMENT OF CONSULTING SERVICES
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SCOPE OF BUSINESS OPPORTUNITIES FOR CONSULTANTS
IN WORLD BANK PROJECTS

• Study, Design, Supervision of Projects
• Technical assistance and Institutional
  strengthening

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BASIC PRINCIPLES OF CONSULTANT SELECTION

• High Quality Services
• Economy and Efficiency
• Fair Selection Process
• Role of National Consultants
• Transparency

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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

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SELECTION METHODS

• Quality- and Cost-Based Selection (QCBS)
• Quality-Based Selection (QBS)
• Fixed Budget (FB)
• Least Cost Selection (LCS)
• Consultants Qualifications (CQ)
• Single Source Selection (SS)

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BORROWERS ROLE

• Short Lists, Invites and Selects
• Negotiates and Contracts
• Supervises, and Pays

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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 Shortlisted Firms must be Qualified
• Participation of National Consultants encouraged

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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

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Making the Shortlist

• Contact, visit client before shortlisting.
• Identify national partner firm, consultants
• Monitor advertisements systematically
• Express interest promptly, selectively
• Expression of Interest (EOI)
• Brief information on firms qualifications
• Relevant technical and regional experience

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Preparing the Proposal

• Pre-proposal visit
• Address the Terms of Reference (TOR) clearly,
  comprehensively
• Emphasize innovative technical solutions
• Qualified Consultants in Key Staff positions
• Firm Provides Strong Technical Leadership

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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

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Equipment/Civil Works

• International competitive bidding (ICB) for large
  contracts
• International advertising
• Use of English, French or Spanish
• Public bid opening
• Use of Standard Bidding Documents
• Contract awarded to lowest priced responsive
  bid
• Meets technical requirements
• Documentation is prepared correctly and submitted
  on time

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ICB - PAYMENT CONDITIONS

• Exchange Rate Fixed
• Price Adjustment
• No Financing Requirement
• Advance Payments
• Letters Of Credit
• Direct Payment

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OTHER METHODS

• LIB - Limited Intl Bidding
• Direct invitation to suppliers
• NCB - National Competitive Bidding
• Countrys rules with some modifications if
  necessary
• SHOPPING
• Price quotations from at least three suppliers
• DIRECT CONTRACTING
• Reconstruction, spare parts, etc.

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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

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How to Track Opportunities

• UN Development Business and dgMarket (fee-based
  online services)
• www.devbusiness.com www.dgmarket.com
• General Procurement Notices
• Requests for Expressions of Interest
• Invitations to prequalify
• Invitations for bids (also referred to as
  Specific Procurement Notices)

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How to win - briefly

• Read everything you can
• Make contacts in the country
• Identify local partners
• Respect local customs
• Solve the clients problem. Dont impose your
  view.

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How to win - briefly

• Respond precisely to technical specifications.
• Unclear? Ask up front, 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.

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Revisions to the Procurement and Consultant
Guidelines May 2004

• Eligibility extended to all countries
• Borrowers may use e-procurement procedures
  (ranging from online advertising to full
  e-tendering)
• Bid security at discretion of borrower
• Advertising required in UNDB and dgMarket for all
  International Competitive Bidding and large-value
  (200,000) consulting contracts

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Revisions cont.

• Enhanced disclosure of results
• Fraud and corruption enhanced to include coercive
  practices
• Borrowers to state in Bidding Documents if
  alternative bids will be considered
• Annual or 18-month procurement plan greater
  adaptability to project needs

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Learn more

• www.worldbank.org/procure
• Procurement guidelines
• Standard bidding and proposal documents
• And more!

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