Procurement Opportunities in EBRD financed projects

1
Procurement Opportunities in EBRD financed
projects

• Jan Jackholt
• Acting Director Procurement

2
EBRD Procurement Policies and Rules

• EBRD projects are classified for procurement
  purposes. Projects are either
• Private sector (Majority of projects)
• Public Sector

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Procurement rules are important, not only as a
deterrent to Fraud and Corruption but

• For the client and the project
• economy and accountability
• For the Banks shareholders
• Articles of Agreement open to all countries
• For the Business Community
• fairness and transparency

4
EBRD Public Procurement Principles

• Shares the same principles as other IFIs but.
• Aligned to principles of WTO Government
  Procurement Agreement
• Eligibility to participate is open to firms from
  all countries including non shareholder
  countries. (except countries subject to UN
  Chapter VII sanctions)
• Only restriction is capability to fulfil the
  contract
• No domestic preference

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EBRDs Procurement Policies and Rules

• Detailed rules for public sector
• open tendering the norm
• Policies and objectives for private sector
• Follow normal acceptable commercial practices
• Concessions must be competitively tendered
• Consultant services
• Competitive selection

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The Clients role during implementation

• The client is responsible for all aspects of the
  procurement of contracts. It invites, receives
  and evaluates tenders and awards contracts which
  in all cases are concluded between the client and
  the supplier or contractor

7
The Banks role during Implementation

• Public Sector Operations
• The Bank reviews and monitor the clients tender
  process and contract administration to ensure
  that procurement is carried out in accordance
  with agreed procedures. The Bank reviews
  complaints
• Private Sector Operations
• The Bank undertakes due diligence and monitors
  contract administration to ensure that fair
  market prices are obtained

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Examples of Goods and Works Procured under Bank
projects (1)

• Municipal infrastructure
• Waste water treatment plants, pipes, meters,
  pumping stations, sewage plants, process plants,
  incinerators. (Note Concession arrangements)
• Transportation
• Rail track maintenance equipment, locomotives,
  signal systems, rails sleepers, trams, buses, air
  traffic control and navigation equipment,
  motorway construction, management information
  systems

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Examples of Goods and Works Procured under Bank
projects (2)

• Power and Energy Efficiency
• Power transmission lines and substations,
  distribution control systems, power stations and
  sub-components, meters, energy efficiency
  equipment, refurbishment of plants, management
  information systems

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Examples of Goods and Works Procured under Bank
projects (3)

• Other Telecommunications, Natural resources
• On-grid telecommunication systems, radio
  telecommunications, mobile phone systems
• Oil/Gas field production and distribution
  equipment, mining and construction equipment
  (Mainly private sector)

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Loan funded Public Procurement (million Euros)
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Public Procurement methods

• Open tendering
• All interested firms may submit tenders
• pre-qualification
• two-stage for complex requirements
• 95-97 of all EBRD financed contracts
• All other methods are exceptions to be justified
  to the Board of Directors

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Open Tendering

• Key milestones are
• Procurement Plan and Contracting Strategy
• Publication of General Procurement Notice
• Publication of the Invitation to Tender
• Tender Opening
• Evaluation
• Contract award

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Strategy - Tender Preparation

• Check EBRD website and sign up for alerts
• Study the Banks Standard Tender Documents
• Respond to the General Procurement Notice
• Obtain Tender Documents early
• Check documents and if necessary request
  additional information (in writing) from client
• Carefully read and follow Instructions To
  Tenderers
• Attend tender opening

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Evaluation of Tenders

• Goods
• Technical and commercial conformity
• Tenderers capability
• Price (Evaluated price)
• Works Supply and Install
• Tenderers experience and capability
• Technical and commercial conformity
• Price (Evaluated price)

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Evaluation will identify any Material Deviation
which

• Substantially affects scope, quality or
  performance
• Substantially limits Purchasers rights or
  tenderers obligations
• Rectification of deviation would unfairly affect
  competitive position of other tenderers
• Will all render the tender non-responsive and the
  tender must be rejected

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Examples of Material Deviations

• Tender Security not valid at tender opening
• Tender is not properly signed
• Non conformance with specifications
• Delivery period beyond limit specified
• Change of Law governing the contract

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Strategy- Post Tender Opening

• Do not attempt to influence tender evaluation
  process
• Process is confidential
• If successful, proceed to contract finalisation
• no negotiation of contract price permitted
• contract finalisation discussions only

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Tenderers recourse

• Before tender opening, raise issues regarding the
  tender documents with the client and copy the
  Bank (Operation Leader)
• If unsuccessful you may ask the client for a
  debriefing
• Complaints should be sent to the client with a
  copy to the Director of the Banking Department
  Team and Director of the Procurement and
  technical Services Unit. Do not complain unless
  you have a strong case built on facts.

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Distribution of Contracts by Country of Origin of
the Tenderers (2002-2006)
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Were do I find the procurement opportunities?

• www.ebrd.com

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The End