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Participate in Haiti’s Reconstruction

Montreal September 23, 2010

Procurement Policies and Procedures for Goods, Works

and Consulting Services

Sabine Engelhard, Lead Procurement SpecialistProject Procurement, Financial Management and Portfolio Monitoring Division (VPC/PDP)

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I. Overview: Project cycle and procurement process

II. Procurement Policies

III. Responsibilities in the Procurement Process

IV. Basis for contract award and right to complain

V. Where to find information and documents

Procurement of Goods, Works & Consulting Services – Topics Overview

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PROCUREMENTARRANGEMENTS

•Procurement Plan•Institutional Capacity Evaluation

•Project risk Evaluation

IdentificationPreparation

Analysis Approval

Execution and Supervision

6 Months4-8

Years

ProjectProfile(PP)

Loan Proposal

ProjectOperational Document

(POD)

Programming

ProcurementProcess

I) Overview: Project cycle and procurement process

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Procurement process: Who are your counterparts?

• Procurement contracts with Executing Agencies in projects financed by the IDB

• Goods & Works• Consulting Services

• Procurement contracts with the IDB

• Consulting services for project preparation, technical cooperation

95%

5%

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II) IDB Procurement Policies – for Sovereign Guaranteed Operations

Basic Policy Principles: Economy, Efficiency, Transparency, Equality, Competition and due process – Apply in general to IDB financed operations

Current Policies adopted in Jan. 2005: GN-2349-7 (http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=774392)GN2350-7 (http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=774394)

Almost identical to those used by other MDB’s

Some Specifics:� Eligibility� Nationality� Origin of goods

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Basic Policy Principles: Economy, Efficiency, Transparency, Equality, Competition and due process are observed

Appendix 4 of Policies (GN2349-7) (GN2350-7)

Borrower (generally private sector) responsible for procurement

Private sector/commercial procurement practices acceptable to the Bank• IDB reviews such practices/procedures to ensure the

result in competitive market prices and needs of project are met.

IDB loan proceeds must be used to procure goods, works and services from IDB member countries.

IDB Procurement Policies - Provisions for Non Sovereign Guaranteed Operations (NSG)

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IDB Procurement Policies - Provisions for Non Sovereign Guaranteed Operations (NSG)

When providing guarantees for NSG:

� Selection procedures for support in project preparationare requested from a shortlist

� Registration available to firms: www.iadb.org/resources/business/doingBusiness/formConsultant.cfm

When SCF Department lends to Sovereign Guarantee Borrowers, both Policies GN-2349-7 and GN-2350-7 apply fully for this portion of the loan.

6

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Specific Procurement Notice (Advertising)

Bidding documents

Clarifications

Bid Submission

Payment for documents

Bid evaluation

Public bid opening

Bid results & notification

Public Access to Database

Award of Contract and Signing

Procurement Plan

Procurement Processfor Works and

Goods

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Procurement Process for the Selection of Consulting Services

Issuance of Request for Proposals

Clarifications

Proposals Submission

Proposal evaluation

Proposals results and notification

Public Access to Database

Award of Contract and Signing

Procurement Plan

Short List of Firms to be invited

Request for expressions of interest (Advertising)

Technical Proposals opening-Evaluation-Price Proposals

Opening-Evaluation

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* Includes all the projects bidding processes

Procurement Policies - Publicity

General Procurement Notice (GNP) *

• Published once within 30 days of loan’s approval by the Board of Directors in:� United Nations periodical “Development Business” (online)� IDB’s web site - Procurement Portal immediately thereafter:

http://www.iadb.org/procurement

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Specific Procurement Notice (SPN)*

• Required for International Competitive Bidding (ICB) - published in:

� United Nations periodical “Development Business” (online)

� IDB’s web site - Procurement Portal immediately thereafter

• Required for National Competitive Bidding (NCB) published in:� The Country’s official web site for advertising government

business opportunities; or

�One local newspaper of wide circulation

Procurement Policies – Publicity (Cont.)

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Procurement Methods for Goods and Works

Procurement Plan specifies the method to be used for each Procurement process

All methods open to bidders from member countries

Methods:� International Competitive Bidding (ICB)� National Competitive Bidding (NCB)�Shopping (comparison of at least 3 price quotations)

NCB may be used for procurement under the threshold amounts

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Days from publication of Specific Procurement Notice (SPN) to deadline for submission of bids or submission of Prequalification Request

� Prequalification Applications 45 days

� Bids� Goods 45 days

� Small Works 45 days

� Major Works 90 days

Goods and Works Prequalification & Bid Preparation Time

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Consulting Services- Selection Methods: Procurement Plan will specifies which method should be used

Six selection methods:� Quality & Cost Based Selection (QCBS)

� Quality Based Selection (QBS)

� Least Cost Based Selection (LCBS)

� Fixed Budget Based Selection (FBBS)

� Selection Based on Qualifications (CQS)

� Single Source Selection (SSS) (non competitive)

Basis for contract award for consulting Services

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Days from publication of SPN to deadline for submission of proposals

� Request for Expressions of Interest 14 days

� Request for Proposal (shortlist: 6 firms) 30 days

Consulting Services Proposal Preparation Time

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Issue clear and balanced bidding documentsProvide sufficient time for bidders to prepare bidsProvide timely responses to bidders questionsEvaluate bids based only on criteria established in biddingdocumentsAward the procurement contractCommunicate results to all partiesAddress complaints promptly and fairly

Executing Agency Responsibilities

III) Responsibilities in the procurement process

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• Carefully analyze ALL requirements of the bidding documents or request for proposal documents

• Strictly comply with the instructions and specifications-terms of reference in the bidding/request for proposals documents

• Require clarifications to documents in writing

• Review bid/proposal for compliance with the requirements before submitting

• Submit bid/proposal with enough time to arrive before deadline

Bidder’s Responsibilities

Responsibilities in the procurement process

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Bank Responsibilities

• Oversees the application of IDB procurement policies and procedures

• Reviews the procurement process ex-ante or ex-post (based on evaluation of institutional capacity) to determine adherence to IDB procurement policies

Responsibilities in the procurement process

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For Goods & Works: The Bidder whose bid has been determined to have the lowest evaluated bid price and is substantially responsive to the bidding documents

IV) Basis for contract award and right to complain

Basis for contract award for goods and works

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The Consulting Firm with the best evaluated proposal

depending on the selection method

Basis for contract award for Consulting Services

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Difference in procedures from procurement of Goods and Works:

� Emphasis on technical competence/capacity and qualifications over price

� Invitations sent to a Short List of Consulting Firms (6)

Basic for Contracting Award

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• Bidders/consulting firms may submit a complaint in writing at anystage of the procurement process

• Procurement process is not suspended when complaint is submitted

• Contracting Agency resolves the complaint

• If Bank determines that its procurement policies have not beenadhered to, Bank can declare misprocurement

� Bank cancels portion of the loan allocated to the process that was declared misprocured

Right to File a Complaint

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IDB dedicated web page to HAITI

www.iadb.org/haiti/?lang=en

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VI) Where to find information and documents

IDB procurement portal Free www.iadb.org/procurement

United Nations Development Business on line: US $550/ per yearwww.devbusiness.com

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Type of ProcurementSpecial

ProvisionsWorks Goods Consulting firms

Threshold

amounts

(US$000)

ICB Shopping ICB Shopping

Shortlist comprised

entirely national

firms

>1,000 <1,000 >250 <250 <100

Advertising Mandatory in

UNDB and IDB

website

National optional

National or

international

invitation

Mandatory in

UNDB and IDB

website

National

optional

National or

international

invitation

As per IDB Policies

Time periods

for

prequalificatio

n

If used

Minimum

1 week

N/A If used

Minimum

1 week

N/A N/A

Time period for

receiving bids Minimum

2 weeks

Minimum 3

business days

Minimum

2 weeks

Minimum

3 business days

Minimum

2 weeks

Limited

International

Bidding

Time period: Minimum 2 weeks

Minimum 3 firms

Time period: 2 weeks minimum

Minimum 3 firms

N/A

HAITI - Special Procurement Provisions to Address Emergency caused by the January 12, 2010, earthquake (OP-387-1)

These procurement provisions are available in addition to current IDB Procurement Policies. Using them is an option for a 12 months period up to December 31, 2010-This period might be extended.

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1,800TBD 300 1,100-1,400Investment needs (timing TBD)

Reconstruction of devastated zones

National transport network

Cyclone preparation & disaster risk management

Regional development & urban renovation (excl. electrification)

National electrification program

Land management & local development

Temporary & permanent housing

Education (school relaunch & construction)

Healthcare, food security &

nutrition

Water & sanitation

Re-launching central administrations

Justice and security

1

2

3

4

5

6

Agricultural production8

9

10

11

12

13

14

Watershed management7

NorthernPole

(100,000 jobs in

garments, tourism & agriculture

+Improved

livelihoods for 100,000 small-scale

farmers)

Wider Artibonite

Pole

(Improved livelihoods for 150,000 small-scale

farmers)

Southern Pole

(50,000 jobs in garment, tourism & agriculture

+Improved livelihoods for 120,000 small-scale

farmers)

Port-au-Prince

Pole

(Number of jobs TBD)

15 16 17 18

Territorial rebuilding

Economic rebuilding

Social rebuilding

Institutional rebuilding

Mapping of country strategic priorities and investment needs PRELIMINARY

NUMBERS

Investment need

* The time frame for some investments in not specified; generally speaking the amounts indicated are to be spend within a 3 year periodSource: GoH Lancement du Plan D’Action Pour Le Relevement et le Developpement d’Haiti (Mai 2010); IDB sector specialists

575

2,041

130

1,200

825

580

450

737,6

600

2,370

980

250

320

355

11,413,6

$ 200/million; 5 year period (Starting in 2010- all non-reimbursable)

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IDB is capable of leading 6 priority development axes where it has the experience and expertise to drive the process

Assessment of IDB’s ability to take the lead based on

▪ Existing IDB project pipeline

▪ Past experience and expertise

▪ Relationship with relevant GoH stakeholders

▪ Relative strength/ reputation compared to other donors

Limited potential to take the lead

Strong potential to take the lead

▪ Education▪ National transport network▪Water & sanitation▪ Agricultural production▪ Private sector development*

▪ Northern pole

▪Wider Artibonite pole

▪ Request from the GoH▪ Strong presence and current strategic approach▪ Strong expertise and leadership▪ Pipeline of existing agriculture projects, strong expertise▪ Recognized leadership & innovative approach with both grants and reimbursable funding▪ Pipeline of existing projects (industrial park, tourism) ▪ Pipeline of existing agriculture projects, strong expertise

3

4

13

11

9

5

17

7

1

6

16

122

8

10

* Not mentioned as separate development axis in Government plan but Private Sector Development is integral part of several axes

Source: IDB internal analysis

DISCUSSED DRAFT

▪ Reconstruction of devastated areas▪ Disaster risk management ▪ Regional development and urban renovation ▪ Electrification program▪ Land management and local development▪Watershed management▪ Housing▪ Healthcare, food security & nutrition▪ Relaunching central administrations▪ Justice and security▪ Port-au-Prince pole▪ Southern pole

141518

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IDB Procurement Portal – Projects in the Pipeline

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Example from UNDB-IDB Procurement Notices

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• RSS stands for “Really Simple Syndication”

• It is an easy way to stay updated automatically with relevant information from specific websites

• Automated notifications will appear every time your favorite websites post something new

• To enable this, a Web site will make a feed, or channel, available, just like any other file or resource on the server

Procurement Web Page RSS

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Tips

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• Familiarize yourself with the IDB Procurement Policies and Standard Procurement Documents

• Check the Procurement Portal of the IDB web site

WWW.IDB.org/pocurement to learn about:• Projects Pipeline• Follow up on Projects in Execution

• Consider joint ventures with local firms

• Learn local business practices

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Questions?

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