1. Procurement Opportunities Under The World Bank Funded Projects
Presentation by
The World Bank Procurement Team
August 30, 2012
Federation of Indian Exporters' Organizations’
Conference on Business Opportunities under World Bank Funded Projects

2. By Abduljabbar Hasan AlQathab
An Overview
By Abduljabbar Hasan AlQathab

3. The “World Bank Group”
1944
1960
1956
1988
1966

4. Mission
Help developing countries and their people reach the Millennium Development Goals by working with our partners to alleviate poverty.

5. Millennium Development Goals MDGs)

6. IBRD and IDA IBRD: IDA: 188 member countries
Reduce poverty in middle-income and creditworthy poorer countries
Banking products: loans, hedging products, guarantees.
Non-lending analytical and advisory services
IDA:
170 member countries
The world’s largest source of interest-free loans and grant assistance
Help the poorest countries

7. IBRD Fund Generation Lending Products Terms Eligibility Recipients
Selling AAA-rated bonds in the world’s financial markets; Retained earnings; Paid-in capital
IBRD Flexible Loan (IFL)
IBRD Contingent Loans
6-month LIBOR; Spread: Fixed and Variable
Maximum Final Maturity: 30 years
Maximum Average Repayment Maturity: 18 years
Front-end fee: 0.25% of the loan amount
Member countries;
Creditworthiness
Governments, government agencies,
and enterprises with government guarantee.
FY2011 $26.3 billion
131 new operations
Fund Generation
Lending Products
Terms
Eligibility
Recipients
Lending Commitments

8. IDA Fund Generation Terms Eligibility Recepients Lending Commitments
Replenished every three years by 40 donor
countries; allocation from IBRD net income;
IDA reflows
Maturity: years, 50 years if approved before
June 1, 1987, grace period: 10 years
Free interest except for Hard Term Lending.
No commitment fee. Service charge for credit: 0.75%
Relative poverty;
Lack of creditworthiness;
Operational cutoff for IDA eligibility for FY12:
$ 1,175 (2012 GNI per capita), with exceptions;
Meet tests of performance
Member governments
Funds may be on-lent to state or private organizations
FY2011- $16.3 billion
230 projects
Fund Generation
Terms
Eligibility
Recepients
Lending Commitments

9. IBRD Loans and IDA Credits
Administered by the same WBG 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.

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

11. IBRD/IDA Lending in FY2011
Fiscal Year 2011 = July 1, 2010 to June 30, 2011

12. Lending Trends FY11 $43 billion [approx] 3/25/2017
Speakers Bureau, External Affairs

13. Top 10 IBRD Borrowers in FY11

14. Basic Lending Instrument

15. IBRD/IDA FY2011 Lending by Lending Instrument

16. Trends Top sectors by loan amount in FY2011:
Public Administration, Law and Justice
Transportation
Health and Other Social Services
Energy and Mining
Water, Sanitation and Flood Protection
Agriculture, Fishing and Forestry
Industry and Trade
Education
Information and Communication

17. FY2011 Lending by Major Sector

18. IBRD/IDA FY Lending Project by Operations Region

19. Investment Project Cycle

20. Bank-Financed Procurement
By Anand Srivastava

21. Procurement in the Bank’s Lending

22. Top Borrowers in 2011 (US$ billions)
IBRD
India
3.5
Mexico
2.7
Brazil
2.6
Indonesia
2.4
Argentina
2.3
China
1.7
Turkey
1.8
Poland
1.3
Romania
1.2
Vietnam
1.1
IDA
Bangladesh
2.3
India
2.2
Pakistan
1.3
Vietnam
1.2
Ethiopia
0.6
Ghana
Nigeria
Kenya
Tanzania
0.5
Mozambuqie
0.4

23. Major Contracts Financed by
The World Bank

24. Major Contracts Financed by
The World Bank

25. Contractual Relationships

26. Roles in Bank- Funded Projects

27. The Bank’s Role in Procurement

28. Borrower’s Role in Procurement

29. Considerations That Guide World Bank Procurement Policies

30. Procurement Guidelines

31. Chronology of Procurement GL Evolution
PROCUREMENT GUIDELINES
1945: None
1951: ICB open to all countries
1956: ICB open to member countries only
1964: Procurement Guidelines
1965: Domestic Preference
1975: Inclusion of Non-ICB
1995: Major Review by Board
Inclusion of Transparency as a major consideration
Mandatory use of Bank SBDs
Use of any three foreign currencies plus local
Inclusion of BOT etc.
1996: F&C Provisions
1999: Amendment for “Euro”
2004: Major revision done
Harmonizing various development Bank regulations
Modernization of Policies: e-Procurement
Simplification
Obstructive Practice Provisions
2011: Revised
Use of country systems/Frame work agreement etc
CONSULTANCY GUIDELINES
1974: Quality only
1981: Price as a factor - QCBS
1997: QCBS - default, Transparency
2004 & 2011: updated

32. January 2011 Revision

33. Procurement Policy Review 2012-13:
Your Inputs Invited
Visit the World Bank’s website to share views, stay updated, and get more information

34. Key Issue on Which Views Invited
What are the challenges the procurement policy review should try to address?
With new concepts of public procurement and the broader context of public sector management practices, what type of changes should the Bank take in modernizing its procurement policies?
In light of various levels of risks and capacity among borrower agencies, how can the Bank best ensure that funds are used for the purpose intended?
How shall Bank best tailor its procurement requirements to meet these diverse & varying demands & needs- diverse sectors, instruments, delivery mechanisms & clients with varying institutional frameworks & governance conditions ?
What could the Bank do to simplify and streamline its current policies and to take advantage of the potential gains offered by e-procurement and IT- tools?
What can the Bank do to advance the use of country systems and harmonization among partner MDBs?
How can Bank monitor and evaluate the its Procurement policies and assess their impact and effectiveness?

35. 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:
Website: Click on “Online Complaint Form”
Anonymous calls are accepted. Please be as specific as possible.

36. Procurement of Consultant Services
By Shanker Lal

37. Scope of Business Opportunities for Consultants in World Bank Projects
Study, Design, Supervision of Projects
Technical assistance and Institutional strengthening
Others

38. Consultant Selection

39. Selection Method

40. Consultant Selection Cycle
General Procurement Notice
Contract Performance
Adv. for EOI
Contract Award
Short-listing
Issuing RFP Documents
Financial Proposal opening & Evaluation
Pre-proposal Conference
Tech. Evaluation
Tech. Proposal Opening

41. Borrower’s Role

42. Short List

43. Consultant’s Strategy

44. Making to the Short List

45. Preparing the Proposal

46. Preparing the Proposal

47. Non Consultant Services
Procurement of
Goods, Works and
Non Consultant Services

48. Goods/Works Procurement Cycle
General Procurement Notice
Contract Performance
Adv. for PQ
Contract Signing
Prequalification
Issuing Bid Documents
Notification of Award
Pre-Bid Conference
Bid Evaluation
Bid Opening

49. International competitive bidding (ICB)

50. International competitive bidding (ICB)

51. ICB- Payment Conditions

52. Other Methods

53. Other Methods

54. Incentives provided by Government
As per Notification number 108/95-E dated 28 August 1995 (as amended from time to time) issued by Central Board of Direct Taxes (CBDT), Goods supplied for World Bank financed projects are exempted from payment of excise duties.
As per Notification number 84/97-Cu dated 11 November 1997 (as amended from time to time) issued by Central Board of Direct Taxes (CBDT), Goods supplied for World Bank financed projects are exempted from payment of custom duties.
Above concessions also apply to equipment purchased for executing civil works for Bank financed projects.

55. Business Opportunities

56. How to Track Opportunities

57. Learn More

58. Guidance to Bidders Appendix 3 of the Guidelines

59. How to Submit a Compliant bid/proposal - briefly
Guidance to Bidders Appendix 3 of the Guidelines
How to Submit a Compliant bid/proposal - briefly
Read everything you can
Make contacts in the country
Identify local partners
Respect local customs
Solve the client’s problem. Don’t impose your view.

60. How to Submit a Compliant bid/proposal- briefly
Guidance to Bidders Appendix 3 of the Guidelines
How to Submit a Compliant bid/proposal- briefly
Respond precisely to technical specifications/Terms of Reference.
Unclear? Ask up front. Do NOT guess or assume.
Submit bid/proposals in time.
Assess the competition. Compete where YOU are competitive.

61. Thank You!
Questions and Answers