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Zagreb, Croatia October 15, 2013. How to be strategic when bidding on WB financed projects. Gilles R. Garcia Manager, Enterprise Outreach Services The World Bank Group. The World Bank Group. Established in 1944 (together with the IMF) in Bretton Woods, first loan in 1947
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Zagreb, Croatia October 15, 2013 How to be strategic when bidding on WB financed projects Gilles R. Garcia Manager, Enterprise Outreach Services The World Bank Group
The World Bank Group • Established in 1944 (together with the IMF) in Bretton Woods, first loan in 1947 • 5 entities (IBRD, IDA, IFC, MIGA, ICSID) • Headquarters in Washington DC, 200 offices worldwide • $53B engagement • 25 000 employees (15 000 staff and 10 000 consultants) • AAA Bank and Development institution • Only active in emerging and developing economies
The World Bank Group: 3 Banks in 1… • The Transaction Bank providing financing to exporters a and investors • The Knowledge Bank • sharing 70 years of experience in emerging economies • Talents • providing global expertise through 14 Global Practices
… to reach our two overarching objectives: • Ending Extreme Poverty by 2030 • Promoting Shared Prosperity
The World Bank Group : A Transaction Bank with 2 main doors For a Total Commitment of $52,6 B in 2013
$ 25 B procurement opportunities on WB financed contracts, $ 100 B on aid funded business Development Agencies Banks World Bank UN EU Other Development Banks Bilaterals … and $ 4 500 B of public procurement in developing countries (15% of GDP)
World Bank $25B procurement contracts … • Regular flow of 100,000 WB financed contracts worth $25 billion per year in all categories (CW,G,C), sectors (Hard to soft) and size(from $10 000 to $600M), • 10,000 contracts prior reviewed (10%) worth $12.7 billion (50%), • 77 % contracts are ICB, 10 % contracts are NCB, • 70 % of contracts awarded to local companies, • « Best practice » projects • 220 WB staff involved in procurement , the Bank is a referee for companies who are sure to get paid, • Large majority of bidders are SME’s. …to access $ 4 500 B public procurement contracts
Croatian Prior Review Contracts FY 2007-2013 • In FY 2007-2013, Croatia was awarded some 800 Prior Review Contracts, worth some $700m • Croatian performance estimates are at some 8000 contracts, worth over $1.4B
Infrastructures represent 85% in volume of Croatian PRC contracts FY 08-13
99% of Croatian Prior Review Contracts awarded in ECA, primarily in Croatia
Average Contract: $872,655, Median one: $162,484 For Croatian companies in 2008-2013 • KonstrucktorInzenjering, $48m, Transportation (Civil Works), Croatia • Viadukt, $34m, Transportation (Civil Works), Croatia • Koncar, $23m, Energy & Mining (Goods), Albania • Dalekovod, $14m, Energy & Mining (Civil Works), Ukraine • Kiv Engineering, $10m, Energy & Mining (Goods), Croatia • Swietelsky, $4m, Water (Civil Works), Croatia • Tehnix, $2m, Public Admin (Goods), Bosnia • Vodovod-Osijek, $1m, Energy & Mining (Civil Works), Croatia • Labomar, $170,000, Agriculture (Goods), Croatia • IvanaSucic, $53,000, Agriculture (Consultant Services), Croatia • EccosInzenjering, $23,000, Industry & Trade (Goods), Croatia
The World Bank has NO contractual relationship with companies • Procurement Rules • Information Dissemination • Complaints World Bank • Country Assistance Strategy (CAS) • Contractual Relation Companies Government PMU • Contractual Relation • Project Implementation
16 Active Projects in Croatia, Contact Information can be found in the Project Information Document (PID) Team Leaders • IsfandyarZaman Khan, Senior Financial Sector Specialist ikhan2@worldbank.org • Daniel Dulitzky, Senior Economist, ddulitzky@worldbank.org • Gerald Ollivier, Senior Infrastructure Specialist, gollivier@worldbank.org • Karin Shepardson, Senior Operations Officer, kshepardson@worldbank.org • ArabelaSenaAprahamian, Senior Operations Officer, aaprahamian@worldbank.org • Victoria Stanley, Senior Operations Officer, vstanley@worldbank.org • Michael Webster, Senior Water and Sanitation Specialist, mwebster@worldbank.org • Munawer Sultan Khwaja, Senior Public Sector Specialist, mkhwaja@worldbank.org Implementing Agencies • Croatian Bank for Reconstruction and Development, Mr. KolencObrazovicZrinka, zkolenc@hbor.hr, Tel: +385 1 4591 625 • Port of Rijeka Authority, bojanhlaca.ri@portauthority.hr • Ministry of Health and Social Welfare, antoaneta.bilic@mzss.hr • Ministry of Culture, Nature Protection Directorate, Tel: +385 1 4866 103 • State Geodetic Administration, +385 1 615 7390 • HrvatskeVode, Tel: +385 1 6155 820 • Ministry of Finance • Other Implementing Agencies to be announced www.worldbank.org/projects
Contact information can be found in the Project Information Document (PID) Second Economic Recovery Development Policy Loan, $200m • Team Leader:SanjaMadzarevic-Sujster, Senior Country Economist based in Zagreb smadzarevic@worldbank.org • Implementing Agency: Ministry of Finance, Mr. Maroje Lang, Assistant Minister of Finance, maroje.lang@mfin.hr Health System Quality and Efficiency Improvement, $67.7m • Team Leader: Carlos Marcelo Bortman, Senior Public Health Specialist based in Washington DC, mbortman@worldbank.org • Implementing Agency: To be announced
World Bank Project Life Cycle http://go.worldbank.org/GI967K75D0
The Key Issue is to address the Real Issues … Business Opportunities Identification Bid Preparation Project Implementation The Real Strategic Challenge Mapping of the key actors critical Timing & Details Critical • Payments • PMU/CM/CD/ TTL/ RPA • Corruption • INT • Clarity of Bidding Documents • Be responsive • Ask questions to the right people • Systematic Web based Screening • Strategic Selection • Field Focus • Local Partnership … in each phase of the Project Life Cycle
Two Sets of Procurement Guidelines For Consultants For Goods & Works http://go.worldbank.org/U9IPSLUDC0 http://go.worldbank.org/1KKD1KNT40
Procurement Policy Review http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,contentMDK:23226925~pagePK:84271~piPK:84287~theSitePK:84266,00.html
Mapping of the Key WB Actors Critical… • Contact the Task Team Leader • Copy the Country Director for the borrowing country • Copy the Regional Procurement Manager • All names and contact information are available in the Project Information Document (PID) Consultant Guidelines, Page 47 – Appendix 3: Guidance to Consultants
70 % of contracts awarded to local companies (For 105 Countries with PSLO network representation) • Access detailed information on prior reviewed contracts awarded, including: • Operational region • Client country • Sector • Type of contract • Supplier name • Contract amount http://go.worldbank.org/BY6HRBV4E0
Accessing Procurement Notices http://go.worldbank.org/KTPE1WKU20
From the Country Assistance/Partnership Strategy… 2 critical steps & sets of documents to track: • Monthly Operational Summary (MOS) http://go.worldbank.org/OG8CL2BD20 • PID/ PAD: Project Information Document and Project Appraisal Document http://documents.worldbank.org … to submitting your bidding documents
3 Projects in Monthly Operational Summary (MOS) http://go.worldbank.org/8I1CDXBDE0
Consultants Have 3 Options • To work on WB-financed projects • To work for the WB as consultants https://wbgeconsult2.worldbank.org/ • To work for the PMU to prepare the projects Option 1, 10 times bigger than Option 2
Electronic Resources • World Bank General Website: • Search by Countries and Topics or by Projects & Operations • http://www.worldbank.org/ • Advanced Search for Projects • http://go.worldbank.org/YLPQAHBY40 • Procurement Guidelines • http://go.worldbank.org/1KKD1KNT40 • Procurement Notices • http://go.worldbank.org/YLPQAHBY40 • Procurement Awards and Summary Reports • http://go.worldbank.org/BY6HRBV4E0 • Monthly Operational Summary • http://go.worldbank.org/OG8CL2BD20
Thankyou Gilles R. Garcia Ggarcia2@worldbankgroup.org www.worldbank.org/business-global