1. How to Do Business with the major IFIs: World Bank, European Investment Bank, Inter-American Development Bank, Asian Development Bank, African Development Bank & Millennium Challenge Corporation (MCC)/USA The Dos & Don'ts ANNUAL ENERGY SECTOR MISSION /PSLO Network, Washington D.C. November, 2013

2. How to go about getting into this market, or staying in this market and increasing shares? My assumptions: 1. You know it all about the IFIs and their simple, very simple procedures……. 2. You know where to find the information about country/project of interest…… What is Next?

3. The MDBs/MCC procedures: All IFIs—About similar process for deciding what to do/work on in a partner (developing/emerging economy) country: CAS/WB/IADB/all MDBs, Compact/MCC—3-5 years investment plans: objectives, projects, amounts. Start up information on project, PIDs/MDBs, GPN— MDBs/MCC, PADs, SPNs What is Next?---2

4. Depending on whether supplies, works or TA: SPN, prequalification/short listing, tender—technical and financial proposal—The 80/20 rule….. Who makes the decisions on tenders? --Evaluation Committees? --Recipient country? --MDBs/MCC? The role of each…..Confusion? What is Next?---3

5. The cowboy shooting from the hip approach —How? GPN, SPN, pre-selection if any, tender = win The methodology: There are two ways:

6. Can be very quick but short term and medium term—an initial investment of about 18-24 months in time and cost. The PFD Group formula: 7/3/1 The project cycle—when to intervene and when not What are the ingredients and the recipe for winning and who makes the final contract award decisions? The Golden Formula…..

7. The Project Cycle

8. Management decision to limit business and geographic areas to those with highest chances to win— THREE main decision factors: 1. Focus, focus, focus, focus; focus and ---5 X FACTOR 2. References, references, references-, references--4 X FACTOR 3. Implementation/Delivery, Implementation/Delivery, Implementation/Delivery---3 X FACTOR 4. Luck—0 X FACTOR…… The Ingredients for Winning….

9. Review IFI markets in your targeted business and geographic areas including CASs and sector reports Choose the first 10-12 business options—mix of short term and long term Form best internal to company and external (international and local companies WITH COMPLEMENTARY REFERENCES) teams for first 2-3 business options for which tenders are expected in next 2-3 months and go get them……. The Ingredients for Winning….

10. BY REGION

11. BY SECTOR

12. BY THEME

13. IBRD Top Ten Borrowers │ Fiscal 2012 millions of dollars

14. IDA Top Ten Borrowers │ Fiscal 2012 millions of dollars

15. Largest Share of IDA Lending went to Africa Share of total lending of $14.8 billion

16. Africa

19. Energy and the World Bank

20. Energy at the World Bank

21. Energy--Allocation of funding by the World Bank In 2012 FY, the World Bank Group committed $8.2 billion to support energy finance; $3 billion from IBRD, $1.9 billion from IDA, $2 billion from IFC, and $500 million from MIGA Since 2007, the Bank Group has provided $12.5 billion for renewable energy projects and programs, over 1/4 of all energy financing over the same period, which totaled $49.2 billion

22. Energy--WB funding allocation continued… In FY 2012 renewable energy projects totaled $3.6 billion; 44% of the year’s energy sector commitments. Within power generation projects approved in FY 2012, renewables accounted for an even larger share 84%. The Climate Investment Funds have committed over $7.6 billion to date into clean energy projects.

23. WB Sustainable Energy lending Lending in Hydropower is about $5.4 billion (43%) of the Bank Group’s renewable energy lending since 2007 has been for hydropower; $1.1 billion (8.5%) each for geothermal and solar PV $875 million (7%) for wind, and smaller amounts for biomass and solar thermal

24. WB Sustainable Energy lending Lastly but not least $3 billion to projects in which the specific clean energy technology supported was not identified beforehand; these include renewable energy funds, credit lines and community- driven development projects which typically support a mix of micro-hydro, solar, and wind power.

25. WBG Energy Portfolio by Region:FY07-12

26. WBG Energy Portfolio by Sector:FY07-12

27. World Bank Energy investment focus by Region

28. The Ingredients for Winning…. Get max possible “intelligence”—technical and financial from: IFI HQ, IFI Country mission, Government authority, government utility in charge, identify international and local partners, follow up all along….. The importance of “Lessons Learned” Top engineering approach and methodology: is it enough to win?

29. Start preparing early for the prequalification, if such step is needed Start preparing early for the tender The “story line” of the EOI and Tender, where applicable The Ingredients for Winning….

30. Critically review quality of all tender documents. Peer review?. Sexy documentation, a plus? Need for a super Editor? Win or lose---Need for post mortem—open and candid The Ingredients for Winning….

31. Negotiations and contract award/signature Is there corruption? What to do? Implementation and payments problems—daily routine? The Ingredients for Winning….

32. Bottom line for winning: a top quality tender and a super good price Financials Offer? Bottom line: as low as possible but with which goods/supplies/services can be delivered with chin up and reputation of company untarnished.

33. Contact The PFD Group 818 18th Street, NW, Suite 1010 Washington, D.C. 20006 USA Tel. + 1 202 785-0052 + 1 202 785-0053 Fax + 1 202 521-0596 Email: Spiros Voyadzis svoyadzis@pfdusllc.com svoyadzis@pfdusllc.com

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