Winning Aid-Funded Business

1. Winning Aid-Funded Business A training course delivered by Nigel Peters, Director of the UKTI Aid-Funded Business Service UKCDS & UUK London 5 November 2012

2. The Bureaucratic Bits Where is the Project Information? Registrations Getting short-listed Tendering

3. WBG & RDB’s General points • Project Cycle is the same • Loans not grants • Borrowing Country will be your client and will procure to according to guidelines (main exception is ADB Technical Assistance which is procured by ADB) • Websites will have a 3 year country lending plan (slightly different names for each Bank) • Typically 2-3 project documents growing in information as the project develops (again slightly different names) • Tender notices on their website • 70:30 consultancy/goods for UK companies • 70:30 technical/price matrix consultancy evaluation • Registration: DACON useful but not obligatory for WBG & AfDB. ADB have their own system (CRS)

4. The Project Cycle

5. The Project Cycle & Procurement • Typically 12-24 months duration • Consultancy opportunities at all phases, but if getting in early (e.g. 1- Identification/2- Preparation) beware exclusion re conflict of interest for the later stages where the larger opportunities will lie • The key documents on the World Bank website are: • Country Partnership Strategy (CPS): a 3 year plan which will give you details on the sectors the WBG will prioritise and very useful background information on the country • Project Information Document (PID): the first time you will see detailed project information. Is this project for me? Start finding a local partner? • Project Appraisal Document (PAD): more detailed updated information • From PID onwards there will be an entry in the Monthly Operational Summary (MOS) • As the project proceeds to: 5-Implementation stage, there will be a General Procurement Notice (GPN) followed by Specific Procurement Notices (SPN) for Expressions of Interest (EOI), Prequalification (PQ) or invitations to bid (for goods). These are now advertised on the World Bank website as well as through composite subscription websites such as UN Development Business (www.devbusiness.com) and dgMarket (www.dgmarket.com)

6. The Project Cycle & Procurement Inter-American Development Bank Similar documents to World Bank but different terminology. All are on the IDB website: www.iadb.org • Country Operational Strategy (COS) • Project Profile • Monthly Operational Summary (MOS) • Procurement Plan • Proposal for Loan Agreement (PAL) • General Procurement Notice (GPN): ICB above $250,000 • Specific Procurement Notice (SPN) • No need for registration, DACON little used

7. The Project Cycle & Procurement • Asian Development Bank: www.adb.org • Country Operations Business Plans (useful background for sector priorities etc) • Opportunities – Consulting Services – Browse by country – Select country, sector, size of project (background documents and procurement plan will be attached where available). Both proposed and approved projects can be searched. • For TA, e-sourcing allows electronic submission of technical & financial proposals • Register for email alerts of procurement opportunities: CSRN – Consultancy Services Recruitment Notices

8. The Project Cycle & Procurement 1 – Identification: short term consultancy (Bank) 2 – Preparation: short/medium term consultancy (Borrower) 3 – Appraisal: short term consultancy (Bank) 4 – Negotiation: n/a 5 – Implementation: Main consultancy, contracting and supply of goods (Borrower) technical assistance (ADB only, otherwise Borrower) 6 – Evaluation: short term consultancy (Bank)

9. How the World & Regional Development Banks work • Provides loans to Developing countries, therefore… • REMEMBER – Beneficiary Government is the client, not the Bank itself • The only exceptions are for some feasibility studies, project evaluation etc where the World Bank HQ in Washington DC will procure directly, for where a registration on DACON is recommended. Otherwise there is no registration system. However the ADB procures all technical assistance projects centrally for which it has its own registration system (CMS)

10. World Bank: Monthly Operational Summary

11. World Bank: Monthly Operational Summary • Mozambique • Water, Sanitation and Flood Protection • (R) Water Services and Institutional Support (WASIS) Additional Financing: The objectives are to: • increase water service coverage in the cities of Beira, Nampula, Quelimane, and Pemba under the delegated management framework; • establish an institutional and regulatory framework for water supply in smaller cities and towns. Negotiations scheduled for 10 August 2010. Environmental Assessment Category B. Project: P120546. US$ 34.0/13.1 (IDA Credit/AUSL). Consultants will be required. Fundo de Investimento e Patrimonio do Abastecimento de Agua (FIPAG), Av. 25 de Setembro, 942, Maputo, Mozambique, Tel: (25-81) 420-470, Fax: (25-81) 498-881, Contact: Nelson Beete, Chairman

12. World Bank: Typical EOI advert • INVITATION FOR EXPRESSION OF INTEREST •  Country - Pakistan • Project - Water Sector Capacity Building and Advisory Services Project (WCAP) • Agency - Project Management and Policy Implementation Unit (PMPIU) • Title - Consulting Services for Feasibility Study of Underground Dams •  The Government of Pakistan has secured soft term loan (IDA Credit) of US $ 38.00 Million from the World Bank to fund 100% cost of the WCAP. The PMPIU at the Ministry of Water and Power is the principal implementing and coordinating agency whereas, Indus River System Authority, Water and Power Development Authority and Infrastructure Project Development Facility are the key implementing agencies of the WCAP. •  A part of the IDA credit has been earmarked for the procurement of consultancy services to identify potential sites for construction of underground dams of 0.15-0.20 MAF capacity and to undertake comprehensive feasibility study of two selected pilot projects. •  Interested consulting firms are required to submit their Expression of Interest giving general profile of the firm and information on relevant experience of work in and outside the country, relevant qualified and experienced personnel available for the assignment by January 06, 2010 to Project Director, WCAP/PMPIU on the under mentioned mailing address. •  A consulting firm will be selected in accordance with the procedures set out in the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers, May 2004, revised October 2006, using the QCBS method. •  Firms who had forwarded EOIs in response to our earlier advertisement are required to apply afresh in view of revised scope of work and change in method of selection. •  Project Director • WCAP/PMPIU • Plot No. 6 (office of Chief Engineering Adviser) • Sector G-5/1, Near Old MNA Hostel Islamabad • Telephone: 92 51 9244604 • Facsimile: 92 51 9244599 • Email: asjadimtiazali@yahoo.com

13. WBG Suppliers FY2011 CountryContract Values $m PR China 3,079 ( South Africa 1,145 India 823 Brazil 808 Spain 467 Argentina 405 United Kingdom 191 (1.4%) Note: prior review contracts only

14. IADB Turnkey Contracting

15. Asian DevelopmentBank Consultancy in 2010 a) Loan Consultancy: $258m. Procured by recipient country b) Technical Assistance Programmes: $159m. Procured by ADB HQ, Manila. c) Staff Consultants: $33m. Procured by ADB HQ Manila, openly procured on website only since September 2010. d) Consultants must register on the ADB Consultants Management System (CMS). This replaces DACON for ADB only. Companies will need to register individuals as well when bidding. Basic registration has 15 minute cut-off. Once registered can complete EOI’s online. Full registration, 30 minute cut-off, if successful only.

16. Asian DevelopmentBank Consultancy Summary • Tenders open to companies from ADB member countries only. Companies must also only employ nationals from member countries • ADB want more competition in the Pacific islands (will accept Caribbean experience), Afghanistan, Cambodia & Pakistan • Newly introduced Indefinate Delivery Contracts (similar to Framework Contracts) • Companies can also be awarded individual consultancies

17. ADB: Country Strategy Summary

18. ADB Email Alerts

19. ADB: Specific Procurement Notice (SPN)

20. AfricanDevelopment Bank • HQ in Tunis, Tunisia (www.afdb.org) • In 2011, Bank Group loan, grant, and other approvals totalled approx UA 5.72 billion. The UK, through DFID committed £567 million for 2011-2013 • UK holds a 1.7% share in the Bank • Working Languages are English and French • All procurement notices posted on AfDB website in the Business Bulletin. • Consultants: Register on AfDB DACON Database • UKTI Liaison Officer, Alan Morrison, based at the British Embassy in Tunis

21. www.AfDB.org procurement page–email alerts

22. Procurement notices on the website

24. Quarterly MOS in the “Business Bulletin” on the website

25. Quarterly MOS in the “Business Bulletin” on the website

26. Caribbean Development Bank • HQ in Barbados (www.caribank.org) • In 2011 the CDB approved $165.0 million in loans, a decrease of 40% on the previous year reflecting concerns over regional debt levels • Borrowing-member countries: Anguilla, Antiqua and Barbuda, The Bahamas, Barbados, Belize, British Virgin Islands, Cayman Islands, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago and the Turks and Caicos Islands • Consultants Register on CDB Website • UKTI Liaison Officer, Hadford Howell, based at the British High Commission

27. Caribbean Development Bank First Project approved in 2011: • St. Lucia Rehabilitation and Reconstruction Project • Home / Projects & Programmes / Approved Projects / Reconstruction, St. Lucia • Borrower: Government of St. Lucia Country: St. Lucia Executing Agency: Ministry of Communications, Works, Transport and Public Utilities Loan Amount: USD17.960 million Summary of Project Description: To assist the Government in recovering from the impact of Hurricane Tomas through the rehabilitation and reconstruction of critical infrastructure. Benefits: The main objective of the Project is to assist the Government of St. Lucia in recovering from the impact of Hurricane Tomas, whilst reducing risks associated with landslide and flood hazards.

28. Caribbean Development Bank Contract awards (inc. TA) to UK companies: 2009201020113 Year% No. Contracts 5 11 5 21 4.7 Total No. Contracts 117 179 153 449 Value (US$) 1.6 13.0 1.6 16.2 11.0 Total value (US$) 33.1 61.4 53.2 147.7

29. Caribbean Development Bank Contracts are advertised as follows: • Newspaper of wide circulation in country of recipient • Development Business – www.devbusiness.com • CDB website: www.caribank.org This is typical for most aid agencies Response time • PQs/Bids for goods and works – generally not less than 6 weeks but may go up to 12 weeks depending on complexity • Consultants – EOIs, 14 days minimum; Proposals – 4 weeks to 3 months depending on complexity

30. Develop strategy (donors, countries of interest/sectors) – your local UKTI team can help • Proactively identify suitable projects. Follow them through the project cycle. Subscribe to tender alert services directly from the bank websites and also consider composite sites such as UN Development Business/DG Market. UKTI Liaison officers can help with project tracking/obtaining documents. • Make initial contact with client and task/project team leader (may be HQ or country based) • Build the right team. Identify potential partners in country. UKTI developing country based teams can help. The World & Regional DB’s Summary

31. UKTI Liaison Officers at the World & Regional DB’s • World & Inter-American DB (Washington DC) Stuart Baird & Justin Kersey • Asian DB (Manila) Fidel Ventura • African DB (Tunis) Alan Morrison • Caribbean DB (Barbados) Hadford Howell Stuart Baird in Washington provides a newsletter and targeted project information under the OMIS system, and all the others will help with ad hoc enquiries and advice. We also organise Missions to these cities on a regular basis.

32. EuropeAid • HQ in Brussels, Missions Worldwide (http://ec.europa.eu/europeaid/index_en.htm) • Procurement totaled almost €11 billion in 2011 and will increase to €13 billion by 2013 • Approx 80/20 split between procurement of Services/Goods & Works • UKTI Liaison team based at UKREP (i.e. the British Embassy to the EU) in Brussels can provide information on upcoming projects, project pipelines, assistance with finding consortium partners, help with bidding tactics and strategy, project/procurement design and management and assistance with dispute settlements

33. EuropeAid – work with us

34. Linked-In “EuropeAid Contracts Group”: join it!

35. Specific opportunities: Example Services (forecast) INDIVIDUAL SERVICE CONTRACT FORECAST Support to e-government (G2C) in the RF Russian Federation 1. Publication reference EuropeAid/126204/C/SER/RU 2. Procedure Restricted 3. Programme Tacis 4. Financing Tacis Russia Action Programme 2006 5. Contracting Authority The European Community, represented by the Commission of the European Communities, for and on behalf of the government of the Russian Federation. 6. Nature of contract Fee-based 7. Contract description The overall objective is to contribute to the creation of a common European and Russian Information Space and to contribute to the establishment of an EU-Russia Information Society dialogue. The specific objective of the project is, inter alia, to assist the Russian government in implementing the 'Conception of e-government in the Russian Federation until 2010'. This may include a. assistance to establish multi-functional centers to improve administrative efficiency. Delivery of state services to citizens and fulfillment of state functions electronically shall be prepared. b. assistance to optimize administrative procedures. Transparency and accountability of the public administration shall be improved by developing a clear legal basis underlying e-government and information policy. c. assistance to designing a unified strategy and IT-architecture for the introduction of e-government. 8. Indicative maximum budget EUR 2,000,000.00 9. Intended timing of publication January 2008 10. Additional information Not applicable

36. EuropeAid: Best Practice and Tips Before Participating • Talk to UKRep for advice at any stage. Monthly newsletter and tailored project information available through OMIS • Monitor tender opportunities on EU websites • Read the EU’s development strategies for individual countries • Do desk research on procurement guidelines • Get a feel of what the EU wants tenderers to deliver • Explore the EU’s project delivery instruments (e.g.Logframes) • Get an idea on who your competitors/consortium partners are – twice yearly seminars in Brussels organised by the Perm Reps include “speed dating” with consultants from across the EU. Pan-European consortia are favoured

37. EBRD • International financial institution, promotes transition to market economies in 29 countries from central Europe to central Asia. In 2011 agreed to extend operations to the southern & eastern Mediterranean (initially Egypt, Morocco, Tunisia and Jordan) • Capital base of €20 billion • Remit to promote transition to market economies by investing mainly in the private sector, mobilise significant foreign direct investment, support privatisation, restructuring and better municipal services to improve people’s lives and encourage environmentally sound and sustainable development • HQ in London. English is the working language. UKTI AFBS can give some commercial help via the UK Executive Directors Office

38. Consultants required to support the EBRD’s projects (loans or equity) EBRD Provides loan or equity to finance infrastructure, funding to Banks etc. (Project) Consultant support for Project Preparation Consultant support for ProjectImplementation To Clients (~80% Private and ~20% Public)

39. Consultancy services required for project preparation & implementation (examples)

40. Overview of Selection Methods for Consultant Selection

41. Contract Awards by EBRD and Clientsto British Consultants in 2007-2011

42. EBRD and British Consultants in 2011 • Wide range of expertise including information technology, financial, legal, integrity, engineering, environmental, procurement – across all sectors and countries of operations • €16.54 m out of €48.27 m of contract awards to British consultants were for the Bank’s institutional needs e.g. IT development and training (this amounts to 60% of the value of all EBRD contracts for institutional needs) • 75% of the Bank’s internal consultants engaged in 2011 (i.e. those required to work from the Bank’s Headquarters) were British

43. www.ebrd.com Projects Countries Sectors Working with us Project financing Procurement (see next!) Trade Loan syndications Advice and support Jobs at the EBRD About us What we do Who we are Where we are Who we work with Procurement Notices (see next slides!)

44. ebrd.com procurement notices • Search by contract type • Consultancy • Services • Corporate goods • works and services • Project goods, • works and services Search by sector Search by country • Search Results • Issue Date • Deadline • Country • Notice Title • Sector • Notice Type

45. Procurement Notice: ebrd.com Procurement Notice Sign-up for Email alerts!

46. Strategy for Getting Contracts • Is your product or service needed? • Where are the opportunities? • Be focussed and selective - comparative advantage • Monitor ‘Procurement Opportunities’ • Subscribe to EBRD eSelection and Procurement Alerts • Contact client agency • Compete: adhere to tender; submit responsive tender • Learn from experience • Explore: subcontracting opportunities; joint venture opportunities; local investment

47. Untied Bilaterals Procurement: webnet.oecd.org/UntiedAidWeb

48. DFID • UK Bilateral Aid to Developing Countries : www.dfid.gov.uk • Review of aid policy, both multilateral and bilateral, March 2011 • Goods bought by contracted Procurement Agents (Crown Agents, Charles Kendall, IPA) • In 2010/11 spent £7.8billion (up to £10.6billion by 2014/5). A cumulative growth of 27% . Ring-fenced budget but because of slow-down in economy, 0.7% of GDP for aid target means cutting £1.1b from original targets • Operational plans 2011-15 for all country programmes now on the website • If you are considering an investment in a developing country and/or have an innovative product or service, talk to DFID’s Private Sector Department

49. DFID • DFID Supplier Portal introduced early 2011 • An electronic platform to hold registration details • Enables e-tendering and e-procurement • Electronic invoices • Access the portal via the DFID website • Tenders also published the Business Link website “Contract Finder” see; www.contractfinder.businesslink.gov.uk

50. DFID • Projects Pipeline and Lists of Successful Contractors including Frameworks and PEAKS now searchable via link from DFID website to Contracts Finder • Project Pipeline is updated every 6 months, currently 124 projects worth over £1billion • Increased focus on fragile and conflict affected states leading to more importance on duty of care for contractors • Move to “payment by results” leading to more output based ToR • DFID funds the Humanitarian Innovation Fund to help suppliers of innovative products