august 30, 2012 procurement opportunities under the world bank funded projects federation of indian...
TRANSCRIPT
August 30, 2012
Procurement Opportunities Under
The World Bank Funded Projects
Federation of Indian Exporters' Organizations’
Conference on Business Opportunities under World Bank Funded Projects
Presentation by
The World Bank Procurement Team
An OverviewBy Abduljabbar Hasan AlQathab
The “World Bank Group”
1944 1960 1956 1988 1966
Mission
Help developing countries and their
people reach the Millennium
Development Goals by working with our
partners to alleviate poverty.
Millennium Development Goals MDGs)
IBRD and IDA
IDA:
170 member countries
The world’s largest source of interest-free loans and grant assistance
Help the poorest countries
IBRD:
188 member countries
Reduce poverty in middle-income and creditworthy poorer countries
Banking products: loans, hedging products, guarantees.
Non-lending analytical and advisory services
IBRD
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 VariableMaximum Final Maturity: 30 yearsMaximum Average Repayment Maturity: 18 yearsFront-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
IDA
Replenished every three years by 40 donorcountries; allocation from IBRD net income;IDA reflows
Maturity: 20-40 years, 50 years if approved before June 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 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
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.
World Bank Lending
Lending, Trends&
Project Development Cycle
Working for a world free of poverty
IBRD/IDA Lending in FY2011
Fiscal Year 2011 = July 1, 2010 to June 30, 2011
Lending Trends
FY11 $43 billion [approx]
Top 10 IBRD Borrowers in FY11
Basic Lending Instrument
IBRD/IDA FY2011 Lending by Lending Instrument
Trends
Top sectors by loan amount in FY2011:
Public Administration, Law and Justice Transportation Health and Other Social Services Energy and Mining Water, Sanitation and Flood Protection Agriculture, Fishing and Forestry Industry and Trade Education Information and Communication
FY2011 Lending by Major Sector
IBRD/IDA FY Lending Project by Operations Region
Investment Project Cycle
Bank-Financed Procurement
By Anand Srivastava
Procurement in the Bank’s Lending
Top Borrowers in 2011(US$ billions)
IBRD
India 3.5Mexico 2.7Brazil 2.6Indonesia 2.4Argentina 2.3China 1.7Turkey 1.8Poland 1.3Romania 1.2Vietnam 1.1
IDA
Bangladesh 2.3India 2.2Pakistan 1.3Vietnam 1.2Ethiopia 0.6Ghana 0.6Nigeria 0.6Kenya 0.6Tanzania 0.5Mozambuqie
0.4
Major Contracts Financed by The World Bank
Major Contracts Financed by The World Bank
Contractual Relationships
Roles in Bank- Funded Projects
The Bank’s Role in Procurement
Borrower’s Role in Procurement
Considerations That Guide World Bank Procurement Policies
Procurement Guidelines
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
Chronology of Procurement GL Evolution
January 2011 Revision
Procurement Policy Review 2012-13:
Your Inputs Invited
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Visit the World Bank’s websiteto share views,stay updated,
and get more information
http://www.worldbank.org/procurementconsultations
1. What are the challenges the procurement policy review should try to address?
2. 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?
3. 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?
4. 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 ?
5. 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?
6. What can the Bank do to advance the use of country systems and harmonization among partner MDBs?
7. How can Bank monitor and evaluate the its Procurement policies and assess their impact and effectiveness?
Key Issue on Which Views Invited
– Department 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.
Anti-corruption Hotline
Procurement of
Consultant ServicesBy Shanker Lal
Scope of Business Opportunities for Consultants in World Bank Projects
Consultant Selection
Selection Method
General Procurement
Notice
Contract Performance
Adv. for EOI
Contract Award
Financial Proposal opening & Evaluation
Short-listing
Tech. Proposal Opening
Issuing RFP Documents
Tech. EvaluationPre-proposal Conference
Consultant Selection Cycle
Borrower’s Role
Short List
Consultant’s Strategy
Making to the Short List
Preparing the Proposal
Preparing the Proposal
Procurement of
Goods, Works and
Non Consultant Services
General Procurement
Notice
Contract Performance Adv. for PQ
Contract Signing
Notification of Award
Prequalification
Bid Opening
Issuing Bid Documents
Bid EvaluationPre-Bid Conference
Goods/Works Procurement Cycle
International competitive bidding (ICB)
International competitive bidding (ICB)
ICB- Payment Conditions
Other Methods
Other Methods
– 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.
Incentives provided by Government
Business Opportunities
How to Track Opportunities
Learn More
Guidance to Bidders Appendix 3 of the Guidelines
Guidance to Bidders Appendix 3 of the Guidelines
Guidance to Bidders Appendix 3 of the Guidelines
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Thank You!
Questions and Answers