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World Bank Procurement Guidelines and Business

Opportunities

Nancy Bikondo - OmosaProcurement Specialist

Procurement Policy and Services GroupNovember 2013

The Role of the Bank and the Borrower in Bank Financed Procurement

Procurement of Goods, Works and Non- Consulting Services

Procurement of Consulting ServicesBusiness Opportunities

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AGENDA

The Role of the Bank and the Borrower in Bank

Financed Procurement

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IBRD/IDA LENDING IN FY13

273 Operations

IBRD 90 (33%)

IDA 183 (67%)

$31.1 Billion

IBRD $14.8 billion (48%)

IDA $16.2 billion (52%)

Fiscal Year 2013 = July 1, 2012 to June 30, 2013

FY13 Top Ten IBRD Borrowers

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Borrower No. of Projects

Commitments (US $)

Percentage of Total Amount*

Brazil 11 3,076 9.9%

Vietnam 12 1,982 6.4%

Indonesia 9 1,721 5.5%

Bangladesh 7 1,567 5.0%

China 14 1,540 5.0%

Africa 8 1,470 4.7%

India 9 1,326 4.3%

Poland 1 1,308 4.2%

Turkey 3 1,301 4.2%

Ethiopia 3 1,115 3.6%

*FY 13 Commitment Total 31029.42 

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Sector Lending Trends FY13

Major Sector IBRD/IDA Amt (US$ mil)

Transportation 4,461,129,127Water/sanitation/flood protection 2,464,591,609Energy & mining 1,806,454,750Health & social services 966,808,134Public admin, Law 676,471,608Agriculture 544,722,635Education 325,144,628Info & communication 132,008,272Finance 58,802,193Industry and trade 48,167,836

Result 11,484,300,791

Assess country system, project’s procurement capacity and potential risks

Assist borrower in procurement planning Provide procurement training/ knowledge

sharing Monitor compliance with loan/credit

agreement and procurement plan

Prior review, Post review, Independent review

Translations

THE BANK’S ROLE IN PROCUREMENT

Design procurement plans Prepare and issue bidding/Proposal documents Invite bids Receive and evaluate bids/proposals Award contracts Implement/ contract payment

Monitor compliance with loan/credit agreement and procurement plan- Audit

THE BORROWER’S ROLE IN PROCUREMENT

CONTRACTUAL RELATIONSHIPS

WORLD BANK SUPPLIER/CONTRACTOR/CONSULTANT

IMPLEMENTING AGENCY(Borrowing Country Government)

LOAN/ CREDIT AGREEMENT

BIDDING DOCUMENTS/ CONTRACTS

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COMPLAINTS/ AUDITS

Procurement of Goods, Works

and Non- Consulting Services

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I. IntroductionII. International Competitive

BiddingIII. Other Methods of Procurement IV. Appendices

PROCUREMENT GUIDELINES(CONTENT/STRUCTURE)

International advertising UNDB online and The World Bank

External Website Standard Bidding Documents

Website: www.worldbank.org Public bid opening Evaluation and comparison of bids

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INTERNATIONAL COMPETITIVE BIDDING (ICB)

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OTHER METHODS• LIB - Limited International Bidding

• Direct invitation to suppliers

• NCB - National Competitive Bidding• Country’s rules with some modifications if

necessary

• Shopping• Price quotations from at least three suppliers

• Direct Contracting• Reconstruction, spare parts, etc.

HOW TO WIN

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• Be informed about the country, project, processes, and competition

• Identify local partners and possible associations• Understand local customs, laws, markets• Respond adequately to technical specifications• Submit timely and high-quality bid/proposals• Contact the Implementing Agency to address

any need for clarifications or other concerns

Procurement ofConsulting Services

CONSULTANT GUIDELINES(CONTENT/STRUCTURE)

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Consulting ServicesI. IntroductionII. Quality- and Cost-Based SelectionIII. Other Methods of SelectionIV. Types of Contracts and Important

ProvisionsV. Selection of Individual ConsultantsVI. Appendices

CONSULTANT SELECTION

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Basic Principles• Economy and efficiency• Quality & fair selection process• Development of national consultants

from borrowing member countries• Transparency

• Public notification for assignments• Standard Request for Proposals• Different selection methods are

specified in the loan agreement

Bank Guidelines

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• Quality- and Cost-Based Selection QCBS

• Quality-Based Selection QBS

• Fixed Budget FBS

• Least Cost Selection LCS

• Consultants’ Qualifications CQS

• Single Source Selection SSS

SELECTION METHODS

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Borrower’s Role in Consultant Selection

• Short lists, invites, and selects

• Negotiates and contracts

• Supervises and makes payments

BORROWER’S ROLE

SHORT LIST

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• Six firms with a wide geographic spread

• No more than two from any one country

• Shortlist may comprise all national firms for smaller contracts

• All short listed firms must be qualified

• Participation of national consultants encouraged

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Country Assistance Strategy (CAS)

Sector Strategies

Project Appraisal Document (PAD)

Project Information Document (PID)

Obtain background information on project:

Understand roles of Borrower and Bank

Target assignments based on regional experience and technical qualifications

Target marketing at appropriate time

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CONSULTANTS’ STRATEGY

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• Contact, visit client before short-listing

• Identify national partner firm, consultants

• Monitor advertisements systematically

• Express interest promptly, selectively

• Expression of Interest (EOI):

• Brief information on firm’s qualifications

• Relevant technical and regional experience

MAKING THE SHORT LIST

PREPARING THE PROPOSAL

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• Conduct a pre-proposal visit

• Fully address the Terms of Reference (TOR)

• Emphasize innovative technical solutions

• Offer qualified consultants in key staff positions

• Provide strong technical leadership

Preparation Steps (Part 1)

PREPARING THE PROPOSAL

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• Cite directly relevant technical and regional experience

• Involve national partner consulting firm or individual consultants

• Avoid deviation from standard RFP forms

• Facilitate evaluation of proposal by using charts, diagrams, color where possible

Preparation Steps (Part 2)

• Respond precisely to the requirements of the proposal

• Provide highly qualified staff and ensure that they are actually available for the assignment

• Do not falsify qualifications!

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SUBMITTING PROPOSALS

GUIDANCE TO BIDDERS/CONSULTANTS APPENDIX 3 OF THE GUIDELINES

• Address all queries or complaints to the client (the Borrower)• Send copies of communications to the Bank or write

to the Bank directly when borrowers do not respond promptly, or if the communication is a complaint against the Borrower. • Address to World Bank Task Team Leader, copy to

Country Director and Regional Procurement Manager• Bidders may request a debriefing

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Business Opportunities &

Trends

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HOW TO TRACK OPPORTUNITIES

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• Country Assistance Strategy• Sector Support Strategy• Monthly Operational Summary• Project Information Document• Project Appraisal Document• Contract Awards• UN Development Business (UNDB)• REOI for consultants hired by World Bank

World Bank websitewww.worldbank.org

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Country Assistance StrategyCountry Assistance Strategy

Project IdentificationProject Identification

Project PreparationProject Preparation

Project AppraisalProject Appraisal

Loan NegotiationsLoan NegotiationsLoan Approval and SigningLoan Approval and Signing

Project SupervisionProject Supervision

ImplementationImplementation

EvaluationEvaluation

World Bank activityJoint activity Borrower activity

Business Opportunities inBank-Funded Projects: Project

Cycle

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ImplementationImplementation

Borrower activity

GoodsWorksGoodsWorks

Business Opportunities inBank-Funded Projects: Goods

& Works

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Country Assistance StrategyCountry Assistance Strategy

Project IdentificationProject Identification

Project PreparationProject Preparation

Project AppraisalProject Appraisal

Project SupervisionProject Supervision

ImplementationImplementation

EvaluationEvaluation

World Bank activityJoint activity Borrower activity

ConsultingServices

ConsultingServices

Business Opportunities in Bank-Funded Projects:

Consulting Services

LEARN MORE

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• Procurement & Consultants Guidelines• Standard Bidding and Proposal Documents• Guide to Business Opportunities• Other

Procurement websitewww.worldbank.org/procure

THANK YOU

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