August 30, 2012

Procurement Opportunities Under

The World Bank Funded Projects

Federation of Indian Exporters' Organizations’

Conference on Business Opportunities under World Bank Funded Projects

Presentation by

The World Bank Procurement Team

An OverviewBy Abduljabbar Hasan AlQathab

The “World Bank Group”

1944 1960 1956 1988 1966

Mission

Help developing countries and their

people reach the Millennium

Development Goals by working with our

partners to alleviate poverty.

Millennium Development Goals MDGs)

IBRD and IDA

IDA:

170 member countries

The world’s largest source of interest-free loans and grant assistance

Help the poorest countries

IBRD:

188 member countries

Reduce poverty in middle-income and creditworthy poorer countries

Banking products: loans, hedging products, guarantees.

Non-lending analytical and advisory services

IBRD

Selling AAA-rated bonds in the world’s financial markets; Retained earnings; Paid-in capital

IBRD Flexible Loan (IFL)IBRD Contingent Loans

6-month LIBOR; Spread: Fixed and VariableMaximum Final Maturity: 30 yearsMaximum Average Repayment Maturity: 18 yearsFront-end fee: 0.25% of the loan amount

Member countries; Creditworthiness

Governments, government agencies,and enterprises with government guarantee.

FY2011 $26.3 billion 131 new operations

Fund Generation

Lending Products

Terms

Eligibility

Recipients

Lending Commitments

IDA

Replenished every three years by 40 donorcountries; allocation from IBRD net income;IDA reflows

Maturity: 20-40 years, 50 years if approved before June 1, 1987, grace period: 10 yearsFree interest except for Hard Term Lending.No commitment fee. Service charge for credit: 0.75%

Relative poverty; Lack of creditworthiness;Operational cutoff for IDA eligibility for FY12: $ 1,175 (2012 GNI per capita), with exceptions;Meet tests of performance

Member governments

Funds may be on-lent to state or private organizations

FY2011- $16.3 billion

230 projects

Fund Generation

Terms

Eligibility

Recepients

Lending Commitments

IBRD Loans and IDA Credits

Administered by the same WBG staff.

Projects must meet the same criteria to qualify for financing.

Same procedures apply for the procurement of goods and works.

Same procedures apply for selection of consultants.

World Bank Lending

Lending, Trends&

Project Development Cycle

Working for a world free of poverty

IBRD/IDA Lending in FY2011

Fiscal Year 2011 = July 1, 2010 to June 30, 2011

Lending Trends

FY11 $43 billion [approx]

Top 10 IBRD Borrowers in FY11

Basic Lending Instrument

IBRD/IDA FY2011 Lending by Lending Instrument

Trends

Top sectors by loan amount in FY2011:

Public Administration, Law and Justice Transportation Health and Other Social Services Energy and Mining Water, Sanitation and Flood Protection Agriculture, Fishing and Forestry Industry and Trade Education Information and Communication

FY2011 Lending by Major Sector

IBRD/IDA FY Lending Project by Operations Region

Investment Project Cycle

Bank-Financed Procurement

By Anand Srivastava

Procurement in the Bank’s Lending

Top Borrowers in 2011(US$ billions)

IBRD

India 3.5Mexico 2.7Brazil 2.6Indonesia 2.4Argentina 2.3China 1.7Turkey 1.8Poland 1.3Romania 1.2Vietnam 1.1

IDA

Bangladesh 2.3India 2.2Pakistan 1.3Vietnam 1.2Ethiopia 0.6Ghana 0.6Nigeria 0.6Kenya 0.6Tanzania 0.5Mozambuqie

0.4

Major Contracts Financed by The World Bank

Major Contracts Financed by The World Bank

Contractual Relationships

Roles in Bank- Funded Projects

The Bank’s Role in Procurement

Borrower’s Role in Procurement

Considerations That Guide World Bank Procurement Policies

Procurement Guidelines

PROCUREMENT GUIDELINES

• 1945: None • 1951: ICB open to all countries • 1956: ICB open to member

countries only• 1964: Procurement Guidelines• 1965: Domestic Preference• 1975: Inclusion of Non-ICB• 1995: Major Review by Board

– Inclusion of Transparency as a major consideration

– Mandatory use of Bank SBDs – Use of any three foreign currencies

plus local – Inclusion of BOT etc.

• 1996: F&C Provisions • 1999: Amendment for “Euro”

• 2004: Major revision done – Harmonizing various development

Bank regulations – Modernization of Policies: e-

Procurement – Simplification – Obstructive Practice Provisions

• 2011: Revised– Use of country systems/Frame

work agreement etc

CONSULTANCY GUIDELINES

• 1974: Quality only • 1981: Price as a factor - QCBS • 1997: QCBS - default,

Transparency • 2004 & 2011: updated

Chronology of Procurement GL Evolution

January 2011 Revision

Procurement Policy Review 2012-13:

Your Inputs Invited

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Visit the World Bank’s websiteto share views,stay updated,

and get more information

http://www.worldbank.org/procurementconsultations

1. What are the challenges the procurement policy review should try to address?

2. With new concepts of public procurement and the broader context of public sector management practices, what type of changes should the Bank take in modernizing its procurement policies?

3. In light of various levels of risks and capacity among borrower agencies, how can the Bank best ensure that funds are used for the purpose intended?

4. How shall Bank best tailor its procurement requirements to meet these diverse & varying demands & needs- diverse sectors, instruments, delivery mechanisms & clients with varying institutional frameworks & governance conditions ?

5. What could the Bank do to simplify and streamline its current policies and to take advantage of the potential gains offered by e-procurement and IT- tools?

6. What can the Bank do to advance the use of country systems and harmonization among partner MDBs?

7. How can Bank monitor and evaluate the its Procurement policies and assess their impact and effectiveness?

Key Issue on Which Views Invited

– Department of Institutional Integrity (INT)– Toll-free: 1-800-831-0463 (24 hours/day) – Collect call: 704-556-7046

By mail: PMB 376713950 Ballantyne Corporate PlaceCharlotte, NC 28277, USA

– Phone: 202-458-7677 Fax: 202-522-7140– E-mail: investigations_hotline@worldbank.org

Website: www.worldbank.org/integrity Click on “Online Complaint Form”

– Anonymous calls are accepted.Please be as specific as possible.

Anti-corruption Hotline

Procurement of

Consultant ServicesBy Shanker Lal

Scope of Business Opportunities for Consultants in World Bank Projects

Consultant Selection

Selection Method

General Procurement

Notice

Contract Performance

Adv. for EOI

Contract Award

Financial Proposal opening & Evaluation

Short-listing

Tech. Proposal Opening

Issuing RFP Documents

Tech. EvaluationPre-proposal Conference

Consultant Selection Cycle

Borrower’s Role

Short List

Consultant’s Strategy

Making to the Short List

Preparing the Proposal

Preparing the Proposal

Procurement of

Goods, Works and

Non Consultant Services

General Procurement

Notice

Contract Performance Adv. for PQ

Contract Signing

Notification of Award

Prequalification

Bid Opening

Issuing Bid Documents

Bid EvaluationPre-Bid Conference

Goods/Works Procurement Cycle

International competitive bidding (ICB)

International competitive bidding (ICB)

ICB- Payment Conditions

Other Methods

Other Methods

– As per Notification number 108/95-E dated 28 August 1995 (as

amended from time to time) issued by Central Board of Direct

Taxes (CBDT), Goods supplied for World Bank financed

projects are exempted from payment of excise duties.

– As per Notification number 84/97-Cu dated 11 November 1997

(as amended from time to time) issued by Central Board of

Direct Taxes (CBDT), Goods supplied for World Bank financed

projects are exempted from payment of custom duties.

– Above concessions also apply to equipment purchased for

executing civil works for Bank financed projects.

Incentives provided by Government

Business Opportunities

How to Track Opportunities

Learn More

Guidance to Bidders Appendix 3 of the Guidelines

Guidance to Bidders Appendix 3 of the Guidelines

Guidance to Bidders Appendix 3 of the Guidelines

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Thank You!

Questions and Answers