Procurement Seminar TURKEY-Istanbul April 2010 B BECQ Chief Procurement Policy Officer World Bank.

Procurement SeminarTURKEY-Istanbul

April 2010B BECQ

Chief Procurement Policy OfficerWorld Bank

World Bank Lending

Lending, Trends&

Project Development Cycle

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IBRD/IDA Lending in FY2009

301 operations IBRD 125 (42%) IDA 176 (58%)

$46.4 billion IBRD $32.8 billion (71%) IDA $13.6 billion (29%)

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FY09 Top Ten IBRD / IDA Borrowers

CountryIDA / IBRD

Commitment Amount ($M)

Total Share of IDA / IBRD

CommitmentIndonesia 4,225.0 9.1%Brazil 3,604.2 7.8%Mexico 3,422.8 7.4%Poland 2,550.2 5.5%China 2,360.0 5.1%India 2,242.4 4.8%Kazakhstan 2,125.0 4.6%Turkey 2,075.1 4.5%Argentina 1,840.0 4.0%Pakistan 1,609.7 3.5%Total 26,054.40 56.3%

Basic Lending Instrument

Investment Lending For goods, works and services Predefined specific project Long-term focus (5 to 10 years) broad range of sectors Procurement and implementation schedule defined 75 - 85 percent of all Bank lending

Development Policy Lending Support countries’ policy and institutional reforms in a sector or the economy as a whole Short-term focus (1 to 3 years) Provide quick-disbursing financing 15 - 25 percent of total Bank lending

IBRD/IDA FY2009 Lending by Lending Instrument

Total Operations Lending$46.4 billions

Investment lending– $28 billion– 60% of the total

Development Policy – $18.4 billion – 40% of the total

Trends

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Top sectors by loan amount in FY2009Economic Policy 8,939.2

Social Protection 6,202.3

Transport 5,711.3

Energy and Mining 4,646.7

Environment 3,829.0

Agriculture and Rural Development 3,570.6

Financial and Private Sector Development 2,924.0

Public Sector Governance 2,357.3

Education 2,353.1

Urban Development 2,053.1

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Trends – FY09 Lending by Major Sector

Economic Policy19%

Social Protection13%

Transport12%

Energy and Mining10%

Environment8%

Agriculture and Rural Devel-

opment8%

Financial and Private Sector Development

6%

Public Sector Governance

5%

Education5%

Urban Devel-opment

4%

Health, Nutrition and Population

3%

Water3%

Social Development1%

Global Information/Communications Tech-nology

1%Poverty Reduction

1%Financial Management

0%

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IBRD/IDA FY09 Lending Project by Operations Region

# Proj % Amount %

AFR 99 33% 7,802.9 17%

EAP 40 13% 8,152.7 18%

SAR 36 12% 5,433.6 12%

ECA 48 16% 9,284.8 20%

MNA 14 5% 1,723.0 4%

LCR 64 21% 14,031.0 30%

301 46,428.02

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Country Assistance Strategy

Project Identification

Project Preparation

Project Appraisal

Loan NegotiationsLoan Approval and Signing

Project Supervision

Implementation

Evaluation

Investment Project Cycle

World Bank activityJoint activity Borrower activity

Bank-Financed Procurement

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Procurement in the Bank’s Lending

Investment projects/programs

Management and reform of public procurement system in borrower countries

Top Ten Supplier Countries* by Major Bank-financed Contracts

* Countries where suppliers/contractors registered.

FY / Rank 2005 2006 2007 2008 20091 China China China China China2 India India India India India3 Argentina Brazil Germany Spain Argentina4 Egypt Russia United Kingdom Brazil Vietnam5 UN Agency France Italy Argentina Italy6 France Germany Argentina Russia Brazil7 Russia Denmark Russia Vietnam Turkey8 Germany UN Agency Vietnam Italy Iran R9 Brazil Pakistan Turkey France Nigeria

10 United Kingdom United States Indonesia Indonesia IndonesiaPercentage of Portfolio 60% 54% 58% 65% 59%

Top major Sectors in FY09 by Contract Amount

Transportation: 42%

Energy and mining: 18%

Water and sanitation: 15%

Major Contracts* Financed by the World Bank

0.00

1,000,000,000.00

2,000,000,000.00

3,000,000,000.00

4,000,000,000.00

5,000,000,000.00

6,000,000,000.00

Trends by Major Sector

Transportation Energy & miningWater/sanit/fld prot Health & social servPublic admin, Law AgricultureEducation FinanceIndustry and trade Info & communica-

tionNot assigned

Transportation42%

Energy & mining18%

Water/sanit/fld

prot15%

Health & social serv10%

Public admin,

Law5%

Agricul-ture4%

Education3%

Finance2%

Industry and trade1%

Info & communication0%Not assigned

0%

FY09

Top Major Sectors in FY09

by Number of Contracts

1. Health & social services: 1,148 (18%)

2. Public admin., law: 1,015 (16%)

3. Transportation: 892 (14%)

Health & social serv

18%Public admin,

Law16%

Transporta-tion14%

Water/sanit/fld prot14%

Agriculture11%

Energy & min-ing

11%

Education8%

Industry and trade3%

Finance2%

Info & communication1%

Not assigned0%

2005 2006 2007 2008 20090

200

400

600

800

1,000

1,200

1,400

1,600

Trends by Major SectorNo. of ContractsHealth & social serv

Public admin, LawTransportationWater/sanit/fld protEnergy & miningEducationAgricultureFinanceIndustry and trade

The Bank’s Role

Identify project/program Appraise project/program and assess risk Share knowledge and information Supervise project/program Monitor Compliance with Agreements

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The Borrower’s Role

Identify project/program Design, prepare and plan the

project/program

Apply for the loan/credit

Implement project/program

Monitor Compliance with Agreements

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The Bank’s Role in Procurement Assess country system, project’s

procurement capacity and potential risks

Assist borrower in procurement planning Provide procurement training/ knowledge sharing Monitor compliance with loan/credit

agreement and procurement plan – Prior review, Post review, Independent review

TranslationsWorking for a world free of poverty

The Borrower’s Role in Procurement

Design procurement plans Prepare and issue bidding documents Invite bids Receive and evaluate bids/proposals Award contracts Implement/ contract payment Monitor compliance with loan/credit

agreement and procurement plan- Audit

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LOAN/CREDIT AGREEMENT

WORLD BANK

IMPLEMENTING AGENCY (Borrowing Country

Government)

SUPPLIER/

CONTRACTOR

BIDDING DOCUMENTS/ CONTRACTS

Contractual Relationships

Procurement Guidelines(May 2004, Revised October 2006)

Goods and Works

I. IntroductionII. International

Competitive Bidding

III. Other Methods of Procurement

IV. Appendices

Consulting Services

I. IntroductionII. Quality- and Cost-Based

SelectionIII. Other Methods of

SelectionIV. Types of Contracts and

Important ProvisionsV. Selection of Individual

ConsultantsVI. Appendices

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Fraud and Corruption Parties expected to observe highest ethical

standards Bank reserves the right to audit firm’s accounts

and records of the contract

Sanctions by Bank: Will reject proposal for award Cancel the portion of the loan Declare firm ineligible for a limited period of time or

indefinitely List of debarred firms will be posted on the World Bank

website:http://www.worldbank.org/debarr

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Anti-corruption HotlineDepartment of Institutional Integrity (INT)

Toll-free: 1-800-831-0463 (24 hours/day) Collect call: 704-556-7046

By mail: PMB 376713950 Ballantyne Corporate PlaceCharlotte, NC 28277, USA

Phone: 202-458-7677 Fax: 202-522-7140

E-mail: [email protected] Website: www.worldbank.org/integrity Click on "Online Complaint Form" Anonymous calls are accepted.

Please be as specific as possible.

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Procurement ofConsulting Services

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Scope of Business Opportunities for Consultants in World Bank Projects

Study, Design, Supervision of Projects

Technical assistance and Institutional strengthening

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Bank Guidelines For Consultant Selection

Public notification for large assignments

Restricted competition

Standard Request for Proposals

Different selection methods are specified in

the loan agreement

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Selection Methods

Quality- and Cost-Based Selection (QCBS)

Quality-Based Selection (QBS)Fixed Budget (FBS)Least Cost Selection (LCS)Consultants’ Qualifications (CQS)Single Source Selection (SSS)

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Borrower’s Role

Short lists, invites and selectsNegotiates and contractsSupervises, and makes payments

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Short List Six firms with a wide geographic

spreadNo more than two from any one

country Shortlist may comprise all national

firms for smaller contracts.All short listed firms must be

qualifiedParticipation of national consultants

encouraged

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Consultants’ Strategy Target assignments based on regional

experience and technical qualifications Obtain background information on

project: Country Assistance Strategy (CAS) Sector Strategies Project Information Document (PID) Project Appraisal Document (PAD)

Understand Roles of Borrower and Bank Target marketing at appropriate time

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Making the Shortlist Identify national partner firm,

consultants Monitor advertisements systematically Express interest promptly, selectively Expression of Interest (EOI):

Brief information on firm’s qualifications Relevant technical and regional experience

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Preparing the Proposal Address the Terms of Reference (TOR)

clearly, comprehensively Emphasize innovative technical

solutions Qualified Consultants in Key Staff

positions Firm Provides Strong Technical

Leadership

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Preparing the Proposal Cite directly relevant technical and

regional experience Involve national partner consulting firm

or individual consultants Do not vary from standard RFP forms Make sure that your proposal is carefully

prepared and easy to evaluate: use charts, diagrams, color

Submit a professional and polished proposal

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Procurement ofGoods, Works and

Services

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International Competitive Bidding (ICB)

International advertising – UNDB online and Development

Gateway’s dgMarketStandard Bidding Documents

– Website: www.worldbank.orgPublic bid openingEvaluation and comparison of bids

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International competitive bidding (ICB)

Contract awarded to lowest evaluated “responsive bid”

Publication of the award of contract

Domestic Preferences under ICBAppendix 2

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Other Methods LIB - Limited International Bidding

• Direct invitation to suppliers NCB - National Competitive Bidding

• Country’s rules with some modifications if necessary

Shopping• Price quotations from at least three suppliers

Direct Contracting• Reconstruction, spare parts, etc.

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Other Methods Force Account

• use of the borrower’s own personnel and equipment

Performance-Based Procurement• Payments made for measured outputs

Community Participation in Procurement• For project sustainability or specific social

objectives

Business Opportunities

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How to Track Opportunities

World Bank website www.worldbank.org• Country Assistance Strategy• Sector Support Strategy• Monthly Operational Summary• Project Information Document• Project Appraisal Document• Contract Awards• UN Development Business (UNDB) &

dgMarket (fee-based online services)• REOI for consultants hired by World Bank

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Trends in Major Awards to Turkish Suppliers – FY 2005-2009 by Category (in US$ Millions)

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Trends in Major Awards to Turkish Suppliers – FY 2005-2009 by Region (in US$ Millions)

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Trends in Major Awards to Turkish Suppliers – FY 2005-2009 by Sector (in US$ Millions)

Learn more

www.worldbank.org/procureProcurement & Consultants

GuidelinesStandard Bidding and Proposal

DocumentsGuide to Business Opportunities

and more!

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Guidance to Bidders Appendix 3 of the Guidelines

Bidder’s role Address all queries or complaints to the client - the

borrower Send copies of communications to the Bank or write to

the Bank directly, when borrowers do not respond promptly, or the communication is a complaint against the borrower.

Address to World Bank Task Team Leader, copy to Country Director and Regional Procurement Manager

Bidders may request a debriefing

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How to win - briefly

Read everything you canLearn country laws and regulations Identify local partnersRespect local customsSolve the client’s problem. Don’t

impose your view.

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How to win - briefly Respond precisely to technical

specifications. Unclear? Ask in writing, do NOT guess or

assume. Submit bid/proposals in time. Bids that

are even one minute late will be rejected.

Assess the competition. Compete where YOU are competitive.

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Thank You!

Questions and Answers