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Procurement Under OP/BP 8.0

Procurement Under OP/BP 8.0. This presentation will cover… Organizational and Institutional Support Simplified Procurement Arrangements Fiduciary Safeguards. Organizational and Institutional Procurement Support. Exceptionally - the Bank executes start-up activities:

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Procurement Under OP/BP 8.0

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  1. Procurement Under OP/BP 8.0 This presentation will cover… • Organizational and Institutional Support • Simplified Procurement Arrangements • Fiduciary Safeguards OPCPR- 03/26/2008

  2. Organizational and Institutional Procurement Support Exceptionally - the Bank executes start-up activities: • In the absence of other alternatives of implementation • Requires an authorization from the Managing Director • Bank involvement will be through GSD • Contracts are financed from a PPF, or a trust fund grant OPCPR- 03/26/2008

  3. Organizational and Institutional Procurement Support • Regional Vice President (RVP) with the Country Director (CD) decide to establish a Rapid Response Committee (RRC) • Procurement specialists may be delegated higher review authority to task teams • Regional emergency designated procurement staff have been assigned • Additional resources for Bank supervision OPCPR- 03/26/2008

  4. Organizational and Institutional Procurement Support • Harmonization of procurement procedures, thresholds, review arrangements among donors • Use of pooled funds with common simplified procurement procedures OPCPR- 03/26/2008

  5. Procurement Agents and Management Contractors • Bank maintains a list PA from which Borrowers can draw from in emergency situations • Borrower has the option to select a firm using CQS • Main criteria for selection may be the timely availability of the key personnel OPCPR- 03/26/2008

  6. Procurement Agents and Management Contractors • The selection of the PA is carried out in accordance with Para. 3.10 of the Procurement Guidelines or Para. 3.17 of the Consultant Guidelines • Procurement should be carried out in accordance with procurement procedures, Loan Agreement and Procurement Plan • Where large numbers of small contracts- management contractor OPCPR- 03/26/2008

  7. Simplified Procurement Arrangements Rapid Capacity Assessments • Can be conducted by Bank staff or by any other qualified resource person or entity • The Regional Procurement Manager clears • Template for simplified RPCA is available OPCPR- 03/26/2008

  8. Simplified Procurement Procedures Single-source selection (SSS) • SSS of consulting firms in accordance with (Para. 3.10 (b) of the Consultant Guidelines) • Only if it presents a clear advantage over competition • Firms that are already working in the country, proven track - may be the most suitable option for the start-up activities • Consultants selected on a single-source basis may be given the right to participate in future assignments OPCPR- 03/26/2008

  9. Selection of consulting firms through Consultants’ Qualification (CQS) CQS, carried out in accordance with Para. 3.7 of the Consultant Guidelines…. However, • The application is not limited to small assignments (footnote 32 of CG) • Ceiling for the use of higher threshold will be determined by the RPM • Advertising for expressions of interest may be forgone, or limited to the local/ provincial level OPCPR- 03/26/2008

  10. Pool of Experts • Support to counterpart agencies at various steps of project execution • Fees may be resolved, at time of pre-selection, and prescribed in a framework agreement – similar in concept to an indefinite Delivery Contracts OPCPR- 03/26/2008

  11. Civil Works and Goods Direct Contracting • In accordance with (paras. 3.6 (a) and 3.6 (e) of the Procurement Guidelines • Extend an existing contract to respond to a natural disaster • The price is reasonable and that no advantage could be obtained by further competition OPCPR- 03/26/2008

  12. Civil Works and Goods Shopping • In accordance with (para 3.5 of the Procurement Guidelines) • Readily available off-the-shelf goods, standard specification commodities, or simple civil works • Threshold may be set on a case by case basis and cleared by the RPM • At least three price quotations for the purchase of goods, works, or services (other than consulting services) OPCPR- 03/26/2008

  13. Use of Positive Lists • A quick-disbursing component designed to finance a positive list of imported or locally produced goods. • Indicators (quantitative or qualitative) to monitor progress during implementation and evaluate outcomes upon completion. • Agreement on the conditions for the release of financial trenches and the documentation and certifications—such as customs and tax certificates or invoices—to be required for locally procured goods. • Would normally follow the national emergency procedures for government procurement, or commercial practices from the private sector if they are acceptable to the Bank. OPCPR- 03/26/2008

  14. Procurement of Commodities • Market prices of commodities, such as grain, fertilizer, and fuel, may be used in accordance with Para. 2.68 of the Procurement Guidelines • Customs duties for emergency commodities should be set at reasonable levels • Bank’s approval to finance such commodities may be conditional on the temporary exemption or reduction of customs duties OPCPR- 03/26/2008

  15. Civil Works and Goods Pre-qualified suppliers and contractors • Using lists of pre-qualified suppliers and contractors to whom periodic invitations are issued • This approach may be used for a large number of similar simple contracts of any size • Suppliers and contractors would be asked to provide quotations for simple unit prices. Contracts awarded on a competitive basis, may be extended up to two years OPCPR- 03/26/2008

  16. Civil Works and Goods • Shorter periods for submission of bids • Bidding periods shorter than 21 days for NCB and 6 weeks for ICB should be cleared with the RPM OPCPR- 03/26/2008

  17. Civil Works and Goods Waiving bid and performance security requirements • para. 2.14 of the Guidelines leaves to the borrower the option of requiring a bid security Prior review thresholds • Based on the capacity assessment of the program management entity • Prior review threshold may be set higher than the regional ones • Requires establishing a stringent monitoring and review system • The objective is to minimize the need of declaring as declaring misprocurement, at post-review OPCPR- 03/26/2008

  18. How to minimize the fiduciary risks Emergency projects has increased risk of fraud and corruption, (abuse of direct contracting, false delivery certification). Team may consider; Sequenced approachallowing low-risk components and activities to move ahead, while necessary preparation are done for activities that represent higher risks OPCPR- 03/26/2008

  19. How to minimize the fiduciary risks • Monitoring/ Procurement Agents to provide fiduciary assurance to the Borrower, the Bank and other donors • Procurement agents that are given the responsibility to handle procurement on the borrower’s behalf • Pre-shipment inspection and/or local independent verification at delivery • Intensified Bank supervision to address and mitigate the increased risks associated with such emergency operations (CO and HQ) OPCPR- 03/26/2008

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