Business Opportunities Seminar World Bank procurement in the Pacific. Cristiano Nunes World Bank

Transcription

1 Business Opportunities Seminar World Bank procurement in the Pacific Cristiano Nunes World Bank October 2014

2 Agenda

3 Agenda

4 Global Practices and Cross Cutting Service Areas GPs(14): marshall the best knowlege available. FY 15: transition Emphasis in not becoming 14 new silos via budget allocations. Procurement is within Governance GP.

5 Procurement Policy Review: Consultations First comprehnsive review in the history of the Bank From one-size-fits-all to fit-for-purpose policy. Borrowers to have more choices July 2014: EDs approved Proposed New Framework for Procurement in Investements Projects Consultations ongoing. Expected to be finalized in June 2015

6 World Bank Footprint in the Pacific

7 Sydney Dili Port Moresby Honiara Liason offices: Tarawa, Port- Villa, Apia and Nuku alofa

8 In 2014, we will begin operations $ 40.8 bi

9 Distribution of operations by type Development Policy DPL $ 11.9 billion Investment Lending IL $ 27.9 billion Program for Results PforR $ 900 million No procurement aaaa Bank s Procurement rules Country s procurement rules No prior review Prior review No prior review

10 Top 10 Borrowers - IBRD Country Commitments (US$ mi) Brazil 2,019 India 1,9075 China 1,615 Ukraine 1,382 Romania 1,374 Philippines 1,279 Morocco 1,096 Indonesia 1,072 Colombia 870 Tunisia 423

11 Top 10 Borrowers - IDA Country Commitments (US$ mi) India 3,134 Pakistan 2,218 Banigladesh 1,888 Nigeria 1,698 Ethiopia 1,624 Vietnam 1,341 Uganda 764 Tanzania 753 Kenya 612 Sri Lanka 442

12 In 2014, East Asia and Pacific we had $ 6.3bi operations

13 41 IDA Credits and Grants => US$581mi Commitments by Country Active Projects by Country + 74 Trust Funds => US$178mi

14 Agenda

15 Contracts in transport commanded more than one third of value financed by Bank s IL projects in FY13 Contracts awarded in FY 13 % of total values, by sector 100% 24% 22% 38% 16% Transportation Energy and Mining Water, Sanitation, Flood Others Total

16 In terms of volume of contracts, public sector and administration led the pack with largest number of contracts Contracts awarded in FY 13 In % of total volume, by sector 100% 47% 15% 22% 16% Public Admin & Law Health and Social Agriculture Others Total

17 E.g.: the large majority of prior reviewed contract value awarded in PNG was in transport Prior reviewed contracts awarded in PNG % of total values, by sector % 6% 100% Transportation Others Total

18 Since August 2000, the Bank prior reviewed 226 contracts in PNG for a total amount of $ 171 million Prior reviewed contracts awarded in PNG % of total values, Consultants Goods 6% 4% 89% Works

19 PNG: local companies awarded the majority of prior reviewed contracts; foregin companies lead on consultancy services 100% 82% of works awarded, but only of awarded value 21% of consultants 74% of number of contracts

20 Key Challenges in the Pacific Limited procurement and contract management capacity and inefficient local approval processes Weak local markets for all types of procurement Lack of interest among foreign bidders/consultants High logistics costs and inefficient supply chain Added complexity of development projects (e.g. regional projects)

21 What does the Bank do on procurement?

22 Preparation of an investment project goes through a cycle of joint work between the Bank and governments Identification Preparation Appraisal Negotiations Signing Implementation Supervision Evaluation Joint Borrower Bank

23 1. Risk and capacity assessment

24 2. Advise and help

25 3. Oversight

26 We design an oversight strategy specific for each project based on risks and capacity Prior review Post-review Independent procurement reviews

27 Prior review is the Bank s no objection before a decision is taken.

28 In the past 12 years, the Bank prior reviewed on average 53% of the value of contracts awarded Total value amount prior reviewed 80 78% % 64% 62% 48% 53% 64% 38% 33% 30% 59% 47% Ø 53 Prior review

29 Processes subject to prior review are identified in the procurement plan based on risk assessment.

30 Documents that are subject to prior review besides procurement plans Goods and works Prequalification docs Bidding docs and amendments Estimated cost Evaluation report Extensions of bid validity Change in award Contract modifications Direct contracting Short-list Consultants RFP, TORs and costs Evaluation reports Minutes of negotiations Draft negotiated contract Extension of proposal validity Change in award Contract modifications Single-source

31 For IL, the World Bank has its own rules and procedures for procurement Quality Price

32 Goods and works Physical output Open competition Consultants Intellectual and advisory Short-list Price is main evaluation criterion Quality is main evaluation criterion One envelope One bid opening ceremony Two envelopes Two opening ceremonies Negotiations only exceptionally Contracts are negotiated

33 Goods and works I. Introduction II. ICB III. Other methods Appendix 1. Review Appendix 2. Domestic Preferences Appendix 3. Guidance to Bidders Consultants I. Introduction II. QCBS III. Other methods IV. Contract V. Individual consultants Appendix 1. Review Appendix 2. Inst. to Consultants Appendix 3. Guidance to Consultants

34 Bank s procurement Guidelines have some top-notch features that few laws in the world would match.

35 Bank s procurement Guidelines have some top-notch features that few laws in the world would match.

36 Such as... Ability to select best quality proposal on consultants Post-qualification procedures for goods and works

37 While almost all countries have one single procurement set of rules and procedures to purchase goods and works and select consultants...

38 ... We understand that these things are different.

39 What does the Government do in Bank-financed procurement?

40 The Government is on the driver s seat...

41 ...in procurement, the government is responsible for:

42 World bank Legal Agreement / Guidelines Government Bidding docs / RFP / Contract Suppliers, contractors, consultants

43 Agenda

44 International Competitive Bidding (ICB) is the preferred method

45 World Bank publishes standard bidding docs for ICB of mandatory use to Borrowers

46 The ICB docs are mature documents that went through many years of evolution

47 Transparency and equal opportunity for foreign bidders are the main features of ICB Public bid opening International advertisement Choice of currency Price adjustment Award published English, Spanish or French

48 In ICB, award goes to the bidder determined to be: Lowest evaluated Responsive Qualified

49 Bid evaluation is confidential Any contact must be done in writing

50 Min. 6 weeks Complaints Bidding docs Advertisement Bid opening Bid evaluation Results & Award Contract signing National media UNDB Bank s website Confidentiality 28 days to sign contract and deliver performance security Red boxes Prior reviewed

51 Other methods Limited International Bidding National Competitive bidding Characteristic Direct invitation Local advertisement, currency and language Shopping Minimum three quotations Direct contracting Force account E.g. Emergency situations (abestos in Tonga) Government s own resources Community participation Social objectives or sustainability

52 Quality-cost based selection is the preferred method for recruiting consulting firms

53 World Bank publishes request for proposals (RFP) of mandatory use to Borrowers when recruiting consulting firms

54 Min. 4 weeks Complaints Expression of interest Short-list, RFP & TORs Distribute RFP to short-list Deadline for proposals Technical evaluation Final Evaluation Negotiations & Award Contract signing Minimum 2 weeks National media UNDB >$300k Bank s website Only those who achieved minimum score advances Regulated by rules Red boxes Prior reviewed

55 Of all who expressed interest, only short-listed consultants are invited to submit a proposal 6 firms No more than two from any one country All must be qualified

56 Expression of Interest Brief information about qualifications Relevant technical and regional experience References to previous similar assignments Goal is to show that consultant is qualified to be in the short-list Proposal Basis to select the winner of the contract Prepared for specific assignment Indicates members of key-staff Responds to TORs Describes methodology Uses standard forms; avoid modifying them

57 Agenda

58 How do I find bidding opportunities?

59 Large contracts are published in three different media 1 National Media Newspapers of national circulation Official gazette Website of government agencies 2 World Bank Development Business You can ask to be in the project s distribution list!

60 Expressions of interest and proposals are different things...

61 What should I do if I don t understand the bidding documents?

62 Bidders are responsible for seeking clarification if they think docs are restrictive, discriminatory, ambiguous, unclear A prospective Bidder requiring any clarification of the Bidding Documents shall contact the Purchaser in writing at the Purchaser s address specified in the BDS. The Purchaser will respond in writing to any request for clarification, provided that such request is received no later than twenty-one (21) days prior to the deadline for submission of bids.

63 Be mindful of the deadline for clarifications

64 Attention! Bid security and bid validity are reasons for automatic bid rejection

65 Check if prices shall be fixed or adjustable. Bidding an adjustable price for fixed-price contract causes bid rejection.

66 Avoid simple mistakes that can cause disqualification; use bid forms enclosed bidding documents; address the selection criteria. If unclear, request clarification.

67 Make sure signing the bid form is part of your bid submission checklist

68 How can I complain about decisions on procurement?

69 Complaints should be addressed to the government; Bank may receive a copy for information.

70 If unsatisfied with final decision, bidders can request a debriefing with the Bank to discuss only the bidder s own bid.

71 Q&A