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Procurement Seminar TURKEY-Istanbul April 2010 B BECQ Chief Procurement Policy Officer World Bank.

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Presentation on theme: "Procurement Seminar TURKEY-Istanbul April 2010 B BECQ Chief Procurement Policy Officer World Bank."— Presentation transcript:

1 Procurement Seminar TURKEY-Istanbul April 2010 B BECQ Chief Procurement Policy Officer World Bank

2 World Bank Lending Lending, Trends & Project Development Cycle Working for a world free of poverty

3 3 IBRD/IDA Lending in FY2009 ð 301 operations ð IBRD 125 (42%) ð IDA 176 (58%) ð $46.4 billion ð IBRD $32.8 billion (71%) ð IDA $13.6 billion (29%)

4 4 FY09 Top Ten IBRD / IDA Borrowers Country IDA / IBRD Commitment Amount ($M) Total Share of IDA / IBRD Commitment Indonesia4, % Brazil3, % Mexico3, % Poland2, % China2, % India2, % Kazakhstan2, % Turkey2, % Argentina1, % Pakistan1, % Total26, %

5 Basic Lending Instrument Investment Lending ð For goods, works and services ð Predefined specific project ð Long-term focus (5 to 10 years) ð broad range of sectors ð Procurement and implementation schedule defined ð percent of all Bank lending Development Policy Lending ð Support countries policy and institutional reforms in a sector or the economy as a whole ð Short-term focus (1 to 3 years) ð Provide quick-disbursing financing ð percent of total Bank lending

6 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

7 Trends Working for a world free of poverty Top sectors by loan amount in FY2009 Economic Policy8,939.2 Social Protection6,202.3 Transport5,711.3 Energy and Mining4,646.7 Environment3,829.0 Agriculture and Rural Development3,570.6 Financial and Private Sector Development2,924.0 Public Sector Governance2,357.3 Education2,353.1 Urban Development2,053.1

8 8 Trends – FY09 Lending by Major Sector

9 9 IBRD/IDA FY09 Lending Project by Operations Region # Proj % Amount % AFR99 33% 7, % EAP40 13% 8, % SAR36 12% 5, % ECA48 16% 9, % MNA14 5% 1, % LCR64 21% 14, % 30146,428.02

10 10 Country Assistance Strategy Project Identification Project Preparation Project Appraisal Loan Negotiations Loan Approval and Signing Project Supervision Implementation Evaluation Investment Project Cycle World Bank activityJoint activityBorrower activity

11 Bank-Financed Procurement Working for a world free of poverty

12 12 Procurement in the Bank s Lending Investment projects/programs Management and reform of public procurement system in borrower countries

13 Top Ten Supplier Countries* by Major Bank-financed Contracts * Countries where suppliers/contractors registered. FY / Rank China 2 India 3 ArgentinaBrazilGermanySpainArgentina 4 EgyptRussiaUnited KingdomBrazilVietnam 5 UN AgencyFranceItalyArgentinaItaly 6 FranceGermanyArgentinaRussiaBrazil 7 RussiaDenmarkRussiaVietnamTurkey 8 GermanyUN AgencyVietnamItalyIran R 9 BrazilPakistanTurkeyFranceNigeria 10 United KingdomUnited StatesIndonesia Percentage of Portfolio 60%54%58%65%59%

14 Top major Sectors in FY09 by Contract Amount Transportation: 42% Energy and mining: 18% Water and sanitation: 15% Major Contracts* Financed by the World Bank

15 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%)

16 The Bank s Role ð Identify project/program ð Appraise project/program and assess risk ð Share knowledge and information ð Supervise project/program ð Monitor Compliance with Agreements Working for a world free of poverty

17 The Borrower s Role ð Identify project/program ð Design, prepare and plan the project/program ð Apply for the loan/credit ð Implement project/program ð Monitor Compliance with Agreements Working for a world free of poverty

18 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

19 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

20 20 Working for a world free of poverty LOAN/CREDIT AGREEMENT WORLD BANK IMPLEMENTING AGENCY (Borrowing Country Government) SUPPLIER/ CONTRACTOR BIDDING DOCUMENTS/ CONTRACTS Contractual Relationships

21 Procurement Guidelines (May 2004, Revised October 2006) Goods and Works I. Introduction II. International Competitive Bidding III. Other Methods of Procurement IV. Appendices Consulting Services 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 Working for a world free of poverty

22 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: Working for a world free of poverty

23 Anti-corruption Hotline Department of Institutional Integrity (INT) Toll-free: (24 hours/day) Collect call: By mail: PMB Ballantyne Corporate Place Charlotte, NC 28277, USA Phone: Fax: E -mail: W ebsite: Click on "Online Complaint Form" Anonymous calls are accepted. Please be as specific as Complaint Form Working for a world free of poverty

24 Procurement of Consulting Services Working for a world free of poverty

25 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

26 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

27 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

28 Borrower s Role Short lists, invites and selects Negotiates and contracts Supervises, and makes payments Working for a world free of poverty

29 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

30 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

31 31 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 Working for a world free of poverty

32 32 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 Working for a world free of poverty

33 33 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 ð Make sure that your proposal is carefully prepared and easy to evaluate: use charts, diagrams, color ð Submit a professional and polished proposal Working for a world free of poverty

34 Procurement of Goods, Works and Services Working for a world free of poverty

35 35 International Competitive Bidding (ICB) International advertising –UNDB online and Development Gateway s dgMarket Standard Bidding Documents – Website: Public bid opening Evaluation and comparison of bids

36 36 International competitive bidding (ICB) Contract awarded to lowest evaluated responsive bid Publication of the award of contract Domestic Preferences under ICB Appendix 2

37 37 Other Methods ð LIB - Limited International Bidding Direct invitation to suppliers ð NCB - National Competitive Bidding Country s rules with some modifications if necessary ð Shopping Price quotations from at least three suppliers ð Direct Contracting Reconstruction, spare parts, etc.

38 38 Other Methods ð Force Account use of the borrower s own personnel and equipment ð Performance-Based Procurement Payments made for measured outputs ð Community Participation in Procurement For project sustainability or specific social objectives

39 Business Opportunities Working for a world free of poverty

40 40 How to Track Opportunities World Bank website 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 REOI

41 41 Trends in Major Awards to Turkish Suppliers – FY by Category (in US$ Millions)

42 42 Trends in Major Awards to Turkish Suppliers – FY by Region (in US$ Millions)

43 43 Trends in Major Awards to Turkish Suppliers – FY by Sector (in US$ Millions)

44 Learn more Procurement & Consultants Guidelines Standard Bidding and Proposal Documents Guide to Business Opportunities and more! Working for a world free of poverty

45 Guidance to Bidders Appendix 3 of the Guidelines ð Bidders role ð Address all queries or complaints to the client - the borrower ð 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. ð Address to World Bank Task Team Leader, copy to Country Director and Regional Procurement Manager ð Bidders may request a debriefing Working for a world free of poverty

46 46 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. Working for a world free of poverty

47 47 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. Working for a world free of poverty

48 48 Thank You! Questions and Answers


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