1. Working with the IFIs Carolyn Cudmore, OLIFI CCIC/CAIDP May 14, 2015

2. 2 OLIFI – Offices of Liaison with International Financial Institutions Our goal Maintaining and growing the percentage of IFI funded contracts awarded to Canadian firms.

3. 3 OLIFI – Who We Are We are part of the Canadian Trade Commissioner Service, located in 4 Canadian Embassies abroad: OLIFI Washington (WB/IDB/UN/MCC): Carolyn Cudmore carolyn.cudmore@internationational.gc.ca OLIFI Manila (ADB): Xuguang Huang xuguang.huang@international.gc.ca OLIFI Abidjan (AfDB): Hartman Kouassi hartman.kouassi@international.gc.ca OLIFI Bridgetown (CDB): Tammy Brathwaite tammy.brathwaite@international.gc.ca

4. 4 IFIs - Common Characteristics AAA Credit Ratings Broad membership consisting of both lending member countries and borrowing member countries Operate either globally or regionally Lending typically associated with well-defined projects and implementation plans along with agreed-upon deliverables and measurable outcomes/performance indicators

5. 5 IFIs - Common Characteristics Provide technical and advisory services to developing countries/BMCs Play a valuable role in research and cooperation on development issues Increasingly harmonized in their operating structures, procurement, etc. Borrowing Member Countries are executing the majority of the procurement.

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7. 7 What do they buy? Relatively little! Rather….. They provide $150 billion annually in loans and grants to developing countries for poverty alleviation and economic development initiatives It is the borrowing or recipient countries who use these funds to buy products or services to carry out these projects

8. 8 What do Borrowing Member Countries Buy? Goods and Works – Equipment (medical, construction, ICT), Vehicles, Physical Works / Infrastructure development (hospitals, schools, roads, irrigation networks, etc) Services - analytical and advisory services (consulting, surveys, etc), education & training, professional (legal, accounting), etc

9. 9 Why explore IFI opportunities? Checks & balances in place that reduce risk for foreign bidders/contracts IFI-financed contracts can be a more accessible point of entry into certain foreign markets Contribution to international development projects and acquisition of international experience Opportunities to develop international partnerships

10. 10 Key points: The IFI Project Cycle The borrowing member countries, through an ‘Executing Agency’ are responsible for implementation of the projects – NOT THE IFI. But IFI-prescribed rules & procedures must be followed throughout the project cycle. The project cycle can last for many years but there may be opportunities throughout all phases (though most often in the ‘implementation’ phase)

11. 11 Key phases of the IFI Project Cycle Identification/Design – IFI & BMC consider possible projects that align with country’s development priorities (Pre-feasibility studies may be required) Preparation (design work, feasibility, EIAs, etc) Appraisal (carried out by Bank staff) Negotiation Implementation & Supervision Evaluation / Assessment

12. 12 Procurement Opportunities Predominantly in the ‘Implementation phase’ Managed by the Executing Agency in country Advertised publicly when above certain thresholds ($200k) Project Procurement Plan which details what will be procured, when, and how For Goods & Works, Pre-qualification often required Consulting: Often two-staged and including: Calls for Expressions of Interest (EOIs) Call for Proposals for short-listed firms (4-6)

13. 13 IFI Procurement Guidelines for selection of consultants and guidelines for goods and works contracts are available on Bank websites – Review closely! Turn-around time to respond is often short Pre-determined evaluation criteria utilized for selection of short-listed firms such as… Regional experience Experience on similar projects Firm’s experience and capability

14. 14 Corporate Procurement Opportunities Corporate procurement consists of the administrative procurement coupled with some operational consulting (e.g. project preparation) WB procures approximately $1 billion / year in corporate procurement from its HQ in DC E-Consultant2 utilized for most of the operational procurement

15. 15 Key Project Documents Country Assistance Strategies / Country Partnership Strategies Monthly Operational Summary Technical Cooperation Profile / Loan Proposal Plan of Operations (IDB) Project Information Document (WB) Project Appraisal Document Procurement Plan (sometimes included in the PID or PAD) General Procurement Notices Specific Procurement Notice ***

16. 16 IFI Procurement Notices – Where to find them? IFI websites Local and national newspapers Individual project websites UNDB - (www.devbusiness.com)www.devbusiness.com Devex – various membership packages exist (www.devex.com) *** discount available for tender tracking accountwww.devex.com

17. Canada’s Consulting Services Ranking at the IFIs 20142013201220112010 World Bank5 th 9 th 14 th 10 th Inter-American Development Bank 7 th 26 th 19 th 16 th 15 th Asian Development Bank6 th 18 th 3 rd 15 th 14 th African Development Bank--1 st 2 nd 1 st

18. 18 IFI Procurement Trends Affecting Canadian Firms Increase of borrowing country company participation and competitiveness In-country firms tend to be more cost competitive Decentralization of the Banks Untied aid

19. 19 Best Practices in Pursuing IFI Funded Projects Learn how the IFIs operate/ know who your client is Assess if pursuing IFI funded projects is for you Focus on your strengths and niche expertise Identify priority countries – as a part of a regional strategy Read all IFI-strategies for your country – do any have your sector of interest as a priority? Review the project pipeline Network with decision makers to gather intelligence Find a local partner Monitor and bid

20. 20 Partnering Local firms are increasingly winning a large portion of IFI- financed contracts Quality-Cost-Based-Selection (QCBS) is the norm, and cost typically constitutes 20-30% of the equation Expressions of Interest and Technical Proposals are evaluated according to pre-determined criteria with as much as 20% allocated to local partners (national preference) Companies that are new to a market should consider proposing their services as a sub-contractor to other successful primes (Canadian or international) Trade Commissioners play a critical role in helping to identify suitable partners in country Mining IFI Contract Award databases can also be useful

21. 21 Networking to Win Bank staff: feasibility studies and project preparation, overview of country and sector initiatives Executing Agencies: Government Ministries for execution of projects: procurement requirements, bidding documents, contract information, procedures & payments Country Office: execution, project ideas & procurement procedures, and problem solving Executive Director’s Office: problem solving, policy trends Local firms: partnership on international bids, local knowledge, legal assistance, language skills, etc

22. 22 Making the Shortlist & Submitting Proposals Making the Shortlist: Gather info; track Projects; contact local partners; submit an Expression of Interest (EOI) Submitting a Winning Proposal: Visit decision makers; address the Terms of Reference clearly; emphasize innovative technical solutions, qualified consultants, and regional experience; involve local partners; submit a professional and polished proposal

23. 23 The Canadian Aid Market Support Network OLIFIs Executive Director’s Offices representing Canada at the IFIs Regional Offices of the TCS in Canada Trade Commissioners at Canadian missions in developing countries Private Sector Liaison Officers (PSLO)

24. 24 OLIFI Services – How We Can Help One-on-one consultations to discuss your IFI marketing strategy Assistance in identifying key IFI contacts and project information Advice on approaching and liaising effectively with Bank staff Troubleshooting bid procedures and procurement problems on behalf of Canadian clients – often done in cooperation with the Canadian Executive Director’s Offices at the Banks

25. 25 OLIFI Services - How We Can Help Up-to-date information on IFI developments, initiatives and opportunities Assist with trade missions to the IFIs and with trade events in Canada Assistance in understanding IFI organizations and operations Manage IFI Washington Website – www.IFIWashington.gc.ca www.IFIWashington.gc.ca

26. 26 The Private Sector Liaison Officer (PSLO) Network A network of business intermediary organizations working to foster trade and investment between countries with the support of IFI products and services Initially established by the WB but expanded to cover other IFIs and aid agencies Disseminate information about business opportunities and facilitate contact between local companies and the IFIs Organize consultations on development issues of interest to the private sector Provide information on knowledge resources and partnership opportunities 8 PSLOs positions in Canada, connected to provincial governments and, trade/industry associations

27. British Columbia: Vacant Alberta: Shane Jaffer - shane.jaffer@gov.ab.cashane.jaffer@gov.ab.ca Saskatchewan: Jordan Gaw - jgaw@sasktrade.sk.cajgaw@sasktrade.sk.ca Manitoba: Robert Roe - robert.roe@gov.mb.carobert.roe@gov.mb.ca Ontario: Philip Turi - philip.turi@cme-mec.caphilip.turi@cme-mec.ca Québec: Louise Lauzon- llauzon@ccmm.qc.callauzon@ccmm.qc.ca New Brunswick: Vacant Nova Scotia: Liesl Harewood - lharewood@nsbi.calharewood@nsbi.ca Canada’s Private Sector Liaison Officers (PSLO) Network

28. 28 How to best prepare? Review IFI websites and other resources (e.g. www.IFIWashington.gc.ca) www.IFIWashington.gc.ca Read ALL available project documentation for any specific projects of interest. Read country partnership strategies for any specific countries of interest. Sector strategies also available. Contact OLIFI or PSLOs with your questions.

29. 29 Key Takeaways Considerable opportunities for Canadian consultants Thorough understanding of the project cycle will offer an advantage Strategic partnership are critical for success Understanding what the TCS can do for you There is always room for growth!

30. www.IFIWashington.gc.ca

31. 31 Thank you Carolyn Cudmore Trade Commissioner (IFIs) carolyn.cudmore@international.gc.ca (202) 448-6416