Engaging With the MDBs: PID, PAD, Procure

1. Engaging With the MDBs: PID, PAD, Procure E. Scott Bozek Director of Business Liaison Office of the U.S. Executive Director The World Bank Group

2. Four Basic Product Lines • Bank-funded procurement: a foreign government borrows money from the MDB to buy goods and services • Corporate procurement: the MDB buys goods and services for its own account • Investment products: trade finance, investment funds, carbon finance • Risk mitigation products: political risk insurance

3. MDB-Funded Procurement The Project Cycle: PID, PAD, Procure 1. Country Assistance Strategy Beginning of the Loan Process Project Information Document (PID) made publicly available. 2. Project Identification 2 Years or Less Before Implementation 9. Evaluation Following Project Completion 3. Project Preparation 1 – 2 Years, Depending on Urgency & Complexity The MDB Project Cycle defines how projects areprogrammed, identified, prepared and approved. 8. Project Supervision 1 – 7 Years or More 4. Project Appraisal 3 – 6 Months 7. Implementation 1 – 7 Years or More Project Appraisal Document (PAD) and Procurement Plan made publicly available. 6. Loan Approval and Signing 1 – 2 Weeks 5. Loan Negotiations 1 – 2 Months Bid Opportunity Joint activity World Bank activity Borrower activity

4. Identify World Bank-funded Bid Opportunities Money Flow for Loans Technical assistance Government The World Bank Loan/credit Consultants Money Flow Money Flow Government Ministry Implementing Agency aka “The Buyer” Sub-suppliers Goods & Services Money Flow Civil Works (Bricks & Mortar) Sub-suppliers Money Flow Sub-suppliers

5. Identify World Bank-funded Bid Opportunities The PID PAD Procure Pipeline General Procurement Notice Procurement notice Board approval and PAD release Procurement notice PID release Procurement notice Procurement notice PID: Project Information Document PAD: Project Appraisal Document

6. Identify World Bank-funded Bid Opportunities Monitor Project Information Documents Bosnia Water Quality Protection Project 2005 P084632 The project development objective is to ….(iii) develop and implement high-priority, low-cost water capital investments;

7. Identify World Bank-funded Bid Opportunities Bosnia Water Quality Protection Project 2005 PAD - Project Appraisal Document Monitor Project Appraisal Documents

8. Identify World Bank-funded Bid Opportunities Monitor Procurement Notices Bosnia Water Quality Protection Project Deadline November 15, 2011 P084632 The City of Mostar and company VODOVOD d.o.o. Mostar (" the Employer") now invites sealed bids from eligible and qualified bidders for: Procurement of Plant Design, Supply, and Installation of the Mostar Waste Water Treatment Plant I Phase # 100 000 PE

9. Projects in the Pipeline

10. World Bank-funded Bid Opportunities Analyzing the Project Cycle

11. Recent Contract Awards

12. Corporate Procurement – eConsultant2 https://wbgeconsult2.worldbank.org

13. Identify World Bank-funded Bid Opportunities World Bank Project Cycle Documents • PID (Project Information Document) – The first publicly available document about a given project is the 6-7 page PID, which conceptualizes the project. www.worldbank.org/projects • Project Appraisal Document (PAD) – The 100+ page PAD offers detailed information, including a procurement plan for the first 18 months. www.worldbank.org/projects • Procure – Procurement notices are published locally and in UN Development Business. • www.devbusiness.com

14. Key MDB Contacts World Bank Task Team Leader Government Ministry Implementation or Procurement Unit (The Buyer) U.S. Embassy Economic and Commercial Specialists Sector Specialist Economist U.S. Commercial Service Advocacy Center CS World Bank Country Operations Specialist Procurement Specialist

15. Identify World Bank-funded Bid Opportunities Roles

16. Identify MDB-funded Bid Opportunities Targeting Strategy • Review procurement notices and trace them back through the process to identify the type of projects that produced opportunities for you in the past • Identify countries in which the Bank has a project in the pipeline (or one that has been recently approved) • Target the countries where you already have a presence or a strong local partner plus a Bank project in the pipeline • Engage with the buyer to educate and influence prior to development of tenders related to the project

17. Identify World Bank-funded Bid Opportunities World Bank Strategies • Plan A: • Engage the Ministry and help shape the projects early in the concept phase before the formal project approval process starts. Work with U.S. Embassy to ensure good introduction and access.

18. Identify World Bank-funded Bid Opportunities World Bank Strategies • Plan B: • Track PIDs and PADs as they emerge and use the long project approval cycle to find a local partner (use the U.S. Embassy if needed) and build a close relationship with the customer before the actual procurement starts.

19. Identify World Bank-funded Bid Opportunities World Bank Strategies • Plan C: • Track procurement opportunities as they are announced and bid frantically on short notice.

20. World Bank Procurement Procurement Guidelines GUIDELINES SELECTION AND EMPLOYMENT OF CONSULTANTS BY WORLD BANK BORROWERS MAY 2004 Revised October 2006 GUIDELINES PROCUREMENT Under IBRD LOANS AND IDA CREDITS MAY 2004 Revised October 2006

21. World Bank Procurement Defining Principles of WB Procurement Policy • Need for economy and efficiency • Give all eligible (qualified) bidders opportunity to compete • Encourage development of national industries in borrowing countries • Procurement process to be transparent • Funds used for the intended purpose • Encourage / advise on least-cost solutions

22. World Bank Procurement International Competitive Bidding (ICB) • Open to all eligible bidders from all countries • International advertising of bid opportunities • World Bank conducts “prior review” • Standard bidding documents • Clear evaluation criteria • Public bid opening • Prequalification for large contracts • Payment in foreign or local currencies • International commercial arbitration

23. World Bank Procurement Basic Principles of Consultant Selection • Economy & Efficiency • Fair, Transparent Selection Process • Public Notification for Large Assignments • Restricted Competition (Shortlist) • Standard Requests for Proposals (RFPs)

24. World Bank Procurement Procurement Capacity Assessments • Assess: • Capacity of Implementing Agency • Adequacy of Procurement and Related Systems • Institutional, political, organizational, and procedural risks • Develop: • Action Plan • Procurement Supervision Plan

25. World Bank Procurement Red Book (G&Ws) vs. Green Book (Consulting)

26. World Bank Procurement Red Book (G&Ws) vs. Green Book (Consulting)

27. World Bank Procurement Red Book (G&Ws) vs. Green Book (Consulting)

28. World Bank Procurement Red Book (G&Ws) vs. Green Book (Consulting)

29. World Bank Procurement Red Book (Goods) vs. Green Book (Consulting)

30. World Bank Procurement Frequently Asked Questions:

31. World Bank Procurement Frequently Asked Questions:

32. World Bank Procurement International Competitive Bidding (ICB) • Open to all eligible bidders from all countries • International advertising of bid opportunities • World Bank conducts “prior review” • Standard bidding documents • Clear evaluation criteria • Public bid opening • Prequalification for large contracts • Payment in foreign or local currencies • International commercial arbitration

33. Pursue MDB-funded Bidding Opportunities Bid Preparation: Do’s & Don’ts • Respond precisely to the requirements of the proposal • Provide highly qualified staff and ensure that they are actually available for the assignment • Do not exaggerate qualifications! Respond precisely to technical specifications. • Unclear? Ask up front, 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.

34. The MDB Basic Course U.S. Commercial Service Liaison Offices The World Bank – Washington, DC www.worldbank.org Scott Bozek, Scott.Bozek@trade.gov Tel: (202) 458-0120 Fax: (202) 477-2967 Asian Development Bank (ADB) – Manila, Philippines www.adb.org Peggy Keshishian, Margaret.Keshishian@trade.gov Tel: 011 (63-2) 887-1345 Fax: 011 (63-2) 887-1164 Inter-American Development Bank (IDB) – Washington, DC www.iadb.org Barbara White, Barbara.White@trade.gov Tel: (202) 623-3822 Fax: (202) 623-2039 European Bank for Reconstruction & Development (EBRD) – London, UK www.ebrd.com William Center, Will Center@trade.gov Tel: 011 44 20 7588 8490 Fax: 011 44 20 7588 8443 African Development Bank (AfDB) – Tunis, Tunisia www.afdb.org Tel: 011 216 - 71- 831- 117 Fax: 011 216-71- 830 - 244

35. E. Scott Bozek Director of Business Liaison Office of the U.S. Executive Director The World Bank Group ebozek@worldbank.org