WORLD BANK BUSINESS SEMINAR

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WORLD BANK BUSINESS SEMINAR

• Moscow, Russia
• 12 August 2008

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INTRODUCTION TO THE WORLD BANK GROUP
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THE WORLD BANK GROUP
IBRD
IDA
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IBRD

• Est 1944
• 185 Members
• 430B lent
• Loans grants to middle income creditworthy
  poor countries

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IDA

• Est 1960
• 166 Members
• 181B lent
• Interest-free credits grants to the worlds
  poorest countries

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WORLD BANK MISSION

• To fight poverty with passion and professionalism
  for lasting results
• To help people help themselves and their
  environment by providing resources, sharing
  knowledge, building capacity and forging
  partnerships in the public and private sectors

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TRENDS IN WORLD BANK LENDING
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WORLD BANK LENDING2003-2007 USB
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WB LENDING BY SECTOR 2003-2007
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WB LENDING BY REGION 2003-2007
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WB LENDING TO RUSSIA 2004-2008 USM
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WB LENDING TO CIS2004-2008 USB
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WB LENDING TO CIS BY COUNTRY 2004-2008
Total 5.7B
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WB LENDING TO CIS BY SECTOR 2004-2008
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THE WORLD BANK PROJECT CYCLE
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WB PROJECT CYCLE
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STRATEGIES

• PRSP countrys priorities
• CAS WBs plan of support
• Both indicate direction of lending
• Specific projects indicated

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IDENTIFICATION

• WB Borrower develop project ideas
• Basic design/scope of project
• Project Information Document
• Integrated Safeguards Data Sheet
• Environmental Assessment Report
• Indigenous Peoples Plan
• Environmental Action Plan

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APPRAISAL

• WB Borrower determine final shape of project
• Project Appraisal Document
• Monthly Operational Summary
• Presentation to WBs Board

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IMPLEMENTATION

• WB supports Borrower
• General Procurement Notice
• Specific Procurement Notice
• UN Development Business
• Development Gateway Marketplace

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EVALUATION

• WBs Independent Evaluation Group audits 25 of
  projects
• Project Performance Assessment Report
• Implementation Completion Results Report
• Impact Evaluation Reports
• Inspection Panel Reports

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SOURCES OF PROJECT INFO

• CAS/PRSP
• PID
• MOS
• PAD
• UNDB/DGM
• National/International Press
• Contacts

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CONTACTS

• Task Manager
• Task Team Leader
• Sector Leader
• Implementing Agency
• Procurement Advisor

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MUNICIPAL WATER WASTEWATER PROJECT

• 122.5 Million
• Approved 12/21/00
• Components
• Immediate Investment Program
• Management Strengthening Operational
  Improvement Program
• Project Management Implementation Support
• To be implemented in 14 medium cities (less than
  500,000 residents)

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FINANCING PLAN

• Borrower - 45.4
• IBRD 122.5
• SIDA 1.0
• Total - 168.9

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PROCUREMENT ARRANGEMENTS
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CONTRACTS AWARDED
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TOP 5 CONTRACTS
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CONSULTING CONTRACTS
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PROCUREMENT METHODS
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PROCUREMENT METHODS - SUPPLIERS

• ICB
• Limited International Bidding
• NCB
• Shopping
• Direct Contracting
• Force Account

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INTERNATIONAL COMPETITIVE BIDDING

• Firms from all countries eligible
• Lump sum, unit prices, reimbursable cost plus
  fees, performance-based contracts allowed
• Turnkey contracts up to Borrower
• Two-stage bidding
• Advertising GPN in DB, dgMarket
• SPN in DB, dgMarket natl newspaper
• Prequalification large/complex works

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MODIFIED ICB

• Financing program of imports
• No GPN reqd
• SPN in natl. paper, DB/dgMarket
• Commodities prices linked to market price
• Currency specified in bidding docs

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LIMITED INTERNATIONAL BIDDING

• ICB by invitation
• Not advertised
• Used when limited suppliers
• Domestic preference N/A

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NATIONAL COMPETITIVE BIDDING

• Unlikely to attract intl competition
• Small contract values
• Works scattered geographically/over time
• Labor-intensive works
• Local prices lower than world prices
• Costs of ICB not justified
• Local advertising, natl language/currency
• Intl firms may participate

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SHOPPING

• Off-the-shelf, standard specs, small value
• Requests for quotes describe goods/works,
  delivery date, etc.
• Quotes submitted by letter, fax, email
• Evaluation of quotes ICB
• Purchase order/contract issued

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DIRECT CONTRACTING(SINGLE SOURCE)

• Extension of existing contract
• Compatibility with existing equipment
• Proprietary equipment
• Contractor requires specific supplier for
  performance guarantee
• Exceptional cases natural disasters

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FORCE ACCOUNT

• Undefined quantity of work
• Small, scattered remote works
• No disruption of ongoing ops
• Interruption risks better managed by Borrower
• Emergencies

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BIDDING DOCUMENTS

• Standard Bidding Documents
• Invitation to bid
• Instructions to bidders
• Form of bid
• Form of contract
• Conditions of contract
• Specifications drawings
• Relevant technical data
• List of goods/bill of quantities
• Delivery time/schedule of completion

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PROCUREMENT METHODS - CONSULTANTS

• QCBS
• QBS
• Fixed-Budget Selection
• Least-Cost Selection
• Consultants Qualification Selection
• Single-Source Selection

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QUALITY- AND COST-BASED SELECTION PROCEDURE

• Preparation of TOR
• Preparation of cost estimate budget
• Advertising
• Short list
• Issue RFP LOI, ITC, TOR, draft contract
• Evaluate tech proposals
• Public opening of financial proposals
• Evaluate financial proposals
• Final evaluation of quality cost
• Negotiations contract award

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ITC INCLUDES EVALUATION CRITERIA

• Experience 0-10
• Methodology 20-50
• Key personnel 30-60
• Knowledge transfer 0-10
• National participation 0-10

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QCBS PREFERRED METHOD FOR CONTRACTING

• NGOs
• Procurement Agents
• Inspection Agents
• Banks
• Auditors

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QUALITY-BASED SELECTION

• May request tech prop only
• RFP indicates estimated budget or estimated key
  staff time
• Highest rank tech prop negotiates budget

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QBS APPRPOPRIATE FOR

• Specialized assignments difficult to define
• Major downstream impact
• Variety of options incomparable

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FIXED-BUDGET SELECTION

• Simple assignments, budget is fixed
• RFP indicates budget
• Tech fin prop in separate envelopes
• Best tech prop invited to negotiate
• Props that exceed budget rejected

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LEAST-COST SELECTION

• Standard/routine assignments (audit, simple
  engineering design)
• Tech fin props in separate envelopes
• Tech props evaluated need to meet min.
  qualifying score (gt70) pub in RFP
• Qualifying tech prop w/ lowest fin bid wins

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CONSULTANTS QUALIFICATIONS SELECTION

• Small assignments lt200K
• EOIs submitted in response to TOR
• Short list established
• Firm w best quals invited to submit combined
  tech-fin proposal

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SINGLE SOURCE SELECTION

• Continuation of previous work
• Emergencies (natural disasters)
• Very small (lt100K)
• Only one firm qualified

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TYPES OF CONTRACTS

• Lump Sum
• Time-based
• Retainer/Contingency Fee
• Percentage
• Indefinite Delivery

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LUMP SUM CONTRACT

• Content duration clearly defined
• Simple planning, studies, designs, etc.
• Payments linked to deliverables

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TIME-BASED CONTRACT

• Undefined scope/length of svcs
• Complex studies, supervision, advisory, training
• Payments based on agreed rates, including social
  costs, overhead fee
• Max payment amt incl in contract

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RETAINER/CONTINGENCY FEE CONTRACT

• Banks/FIs preparing sales/mergers of cos
• Privatization
• Retainer success fee ( sale price)

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PERCENTAGE CONTRACT

• Architecture/procurement/inspection
• Payment based on value of project
  construction/cost of goods procured/inspected
• Fixed target cost covering defined svcs

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INDEFINITE DELIVERY CONTRACT

• Specialized on call svcs
• Advisers on complex projects, adjudicators,
  troubleshooters, etc.
• Unit rate decided for experts
• Kept on call for usually 1 yr

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THE WB MARKET IN RUSSIA CIS
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WB CONTRACTS IN RUSSIA 2001-7 Total US1.6B
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WB CONTRACTS AWARDED TO RUSSIAN COMPANIES USM
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WB CONTRACTS FOR RUSSIAN COMPANIES OUTSIDE RUSSIA
2001-2007 US200M Total
Total 200M
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WB CONTRACTS IN RUSSIA TO NON-RUS COMPANIES
2001-7Total US348M
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CONSULTANT SELECTION2001-7 Total 864M
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GOODS WORKS SELECTION2001-7 Total 747M
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NEW PROJECTS - RUSSIA
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NEW PROJECTS - CIS
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MARKETING STRAGEGY

• Begin early
• Contact WB Implementing Agency
• Monitor MOS, UNDB
• Original EOIs/Proposals
• Follow up
• Follow-on work

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NETWORKING RECEPTION