Presentation on theme: "Procurement Opportunities Under The World Bank Funded Projects"— Presentation transcript:
1 Procurement Opportunities Under The World Bank Funded Projects Presentation byThe World Bank Procurement TeamAugust 30, 2012Federation of Indian Exporters' Organizations’Conference on Business Opportunities under World Bank Funded Projects
2 By Abduljabbar Hasan AlQathab An OverviewBy Abduljabbar Hasan AlQathab
6 IBRD and IDA IBRD: IDA: 188 member countries Reduce poverty in middle-income and creditworthy poorer countriesBanking products: loans, hedging products, guarantees.Non-lending analytical and advisory servicesIDA:170 member countriesThe world’s largest source of interest-free loans and grant assistanceHelp 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 capitalIBRD Flexible Loan (IFL)IBRD Contingent Loans6-month LIBOR; Spread: Fixed and VariableMaximum Final Maturity: 30 yearsMaximum Average Repayment Maturity: 18 yearsFront-end fee: 0.25% of the loan amountMember countries;CreditworthinessGovernments, government agencies,and enterprises with government guarantee.FY2011 $26.3 billion131 new operationsFund GenerationLending ProductsTermsEligibilityRecipientsLending Commitments
8 IDA Fund Generation Terms Eligibility Recepients Lending Commitments Replenished every three years by 40 donorcountries; allocation from IBRD net income;IDA reflowsMaturity: years, 50 years if approved beforeJune 1, 1987, grace period: 10 yearsFree interest except for Hard Term Lending.No commitment fee. Service charge for credit: 0.75%Relative poverty;Lack of creditworthiness;Operational cutoff for IDA eligibility for FY12:$ 1,175 (2012 GNI per capita), with exceptions;Meet tests of performanceMember governmentsFunds may be on-lent to state or private organizationsFY2011- $16.3 billion230 projectsFund GenerationTermsEligibilityRecepientsLending Commitments
9 IBRD Loans and IDA Credits Administered by the same WBG staff.Projects must meet the same criteria to qualify for financing.Same procedures apply for the procurement of goods and works.Same procedures apply for selection of consultants.
10 Project Development Cycle World Bank LendingLending, Trends&Project Development CycleWorking for a world free of poverty
11 IBRD/IDA Lending in FY2011Fiscal Year 2011 = July 1, 2010 to June 30, 2011
16 Trends Top sectors by loan amount in FY2011: Public Administration, Law and JusticeTransportationHealth and Other Social ServicesEnergy and MiningWater, Sanitation and Flood ProtectionAgriculture, Fishing and ForestryIndustry and TradeEducationInformation and Communication
22 Top Borrowers in 2011 (US$ billions) IBRDIndia3.5Mexico2.7Brazil2.6Indonesia2.4Argentina2.3China1.7Turkey1.8Poland1.3Romania1.2Vietnam1.1IDABangladesh2.3India2.2Pakistan1.3Vietnam1.2Ethiopia0.6GhanaNigeriaKenyaTanzania0.5Mozambuqie0.4
31 Chronology of Procurement GL Evolution PROCUREMENT GUIDELINES1945: None1951: ICB open to all countries1956: ICB open to member countries only1964: Procurement Guidelines1965: Domestic Preference1975: Inclusion of Non-ICB1995: Major Review by BoardInclusion of Transparency as a major considerationMandatory use of Bank SBDsUse of any three foreign currencies plus localInclusion of BOT etc.1996: F&C Provisions1999: Amendment for “Euro”2004: Major revision doneHarmonizing various development Bank regulationsModernization of Policies: e-ProcurementSimplificationObstructive Practice Provisions2011: RevisedUse of country systems/Frame work agreement etcCONSULTANCY GUIDELINES1974: Quality only1981: Price as a factor - QCBS1997: QCBS - default, Transparency2004 & 2011: updated
33 Procurement Policy Review 2012-13: Your Inputs InvitedVisit 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, USAPhone: 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 ProjectsTechnical assistance and Institutional strengtheningOthers
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.
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 GuidelinesHow to Submit a Compliant bid/proposal - brieflyRead everything you canMake contacts in the countryIdentify local partnersRespect local customsSolve 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 GuidelinesHow to Submit a Compliant bid/proposal- brieflyRespond 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.