outreach seminar for nep business opportunities in world bank funded projects outreach seminar for...

OUTREACH SEMINAR FOR NEP OUTREACH SEMINAR FOR NEP

Business Opportunities Business Opportunities in World Bank funded Projectsin World Bank funded Projects

OUTREACH SEMINAR FOR NEP OUTREACH SEMINAR FOR NEP

Business Opportunities Business Opportunities in World Bank funded Projectsin World Bank funded Projects

World BankWorld Bank

Yangon - October 27, 2015Yangon - October 27, 2015

Business Outreach Seminar in Nay Pyi Taw, Republic of Business Outreach Seminar in Nay Pyi Taw, Republic of the Union of Myanmarthe Union of Myanmar

Objective of the PresentationObjective of the Presentation

What should I know about WB fundedWhat should I know about WB funded

project & procurement activities?project & procurement activities?

Who are the key players involved?Who are the key players involved?

How to participate in Bank funded projects?How to participate in Bank funded projects?

How to prepare a responsive bidHow to prepare a responsive bid (key bid requirements and common pitfalls in bidding)

National Electric Project Specific information.

Where to find more information? Where to find more information?

October 27, 2015October 27, 2015 22

THE OVERALL CONTEXT

Part I

October 27, 2015October 27, 2015 33Business Outreach Seminar in Nay Pyi Taw, Republic of Business Outreach Seminar in Nay Pyi Taw, Republic of the Union of Myanmarthe Union of Myanmar

October 20, 2015October 20, 2015 Business Outreach Seminar in Yangon, Republic of the Business Outreach Seminar in Yangon, Republic of the Union of MyanmarUnion of Myanmar

Financing AgreementFinancing Agreement

World BankSupplier

ContractorConsultant

Country(Implementing

Agency)

Bidding Documents/ContractsBidding Documents/Contracts

Key PlayersKey Players

44

(Contractual relationships)(Contractual relationships)

(Non Contractual relationships)

The CountryThe Country

Government of the Union of Myanamar

Implementing Agencies (Line Ministries or Project Mgt Units)

Sector-Energy

Local Customs/Country Laws & Regulations (Procurement laws/Regulations; Investment laws; Tax regime etc)

Domestic Private Sector (Competitors, potential partners)


Myanmar Portfolio at GlanceMyanmar Portfolio at Glance

6

Roles in Bank-funded ProjectRoles in Bank-funded Project


Roles in ProcurementRoles in Procurement

World BankWorld Bank Assess country procurement system,

capacity of implementing agency, and procurement risks

Assist in procurement planning

Training, knowledge/best practice sharing

Monitor compliance with Financing Agreement and Procurement Plan

Review bid documents and evaluation reports prior to issuance and award of contract

Investigate fraud and corruption allegations

MEPE and Utilities MEPE and Utilities (Implementing agency)(Implementing agency)

Prepare Procurement Plans

Advertise bidding opportunities

Prepare/issue bidding documents

Receive/evaluate bids/proposals

Award /Implement contracts

Ensure compliance with Financing Agreement and Procurement Plan

Arrange for project/program audit


Steps and actors in bidding processStep Government

RoleBank Role Private sector

Prepare procurement plan and cost estimates

Prepares Reviews No involvement

Prepare bidding documents Prepares Reviews No involvement

Issue bidding documents Advertise and issue

None Buys or collects

Clarification on bidding documents

issue clarifications

Reviews Seek clarifications

Submission of bids Receives, records in public

None Submit

Evaluate bids Evaluates Review recommendation

No involvement

Award of contract Award None Accepts9

Key Documents to Guide Procurement under the Project

Financing Agreement signed between Government and World Bank

Project Appraisal Document (PAD)

World Bank Procurement and Consultant Guidelines

Project Operations Manual

Government internal processes and procedures agreed with the Bank for the implementation of the project

Agreed Procurement Plan

10

Bank Policy objectives in Procurement

NEED FOR ECONOMY AND EFFICIENCY◦ Value for money and method should commensurate with speed and value

GIVE ELIGIBLE BIDDERS OPPORTUNITY TO BID◦ Advertise widely locally in at least two newspapers of wide national circulation

ENCOURAGE DEVELOPMENT OF LOCAL INDUSTRY◦ Provide domestic preference of 15% in evaluation to local manufacturers and

7.5% for local contractors under International Competitive Bidding

TRANSPARENCY◦ Evaluation by committee, advertise widely and publish award results. Bidders

free to complain, prepare and publish procurement plan

11

October 27, 2015October 27, 2015 1212Business Outreach Seminar in Nay Pyi Taw, Republic of the Union of Business Outreach Seminar in Nay Pyi Taw, Republic of the Union of MyanmarMyanmar

World Bank Procurement GuidelinesWorld Bank Procurement Guidelines

GUIDELINES

Procurement of goods, works and non-consulting

services

Under IBRD Loans andIDA Credits & Grants by

World Bank Borrowers

January 2011Revised July 2014

GUIDELINESSelection and Employment

of Consultants

Under IBRD Loans and IDA Credits & Grants

By World Bank Borrowers

January 2011Revised July 2014

The Bidding DocumentThe Bidding Document

Bidding documents include draft contract.

In contrast to the procurement guidelines, SBDs set out the rules for a particular tender.

Obtain and Read carefully the Bidding Document issued by the Implementing Agency


Structure of the Standard Bidding Documents (SBD)

TO BE USED TO BE USED UNCHANGEDUNCHANGED

TO BE CUSTOMIZED BY TO BE CUSTOMIZED BY PURCHASERPURCHASER

TO BE TO BE FILLED FILLED OUT BY OUT BY

BIDDERSBIDDERS

Section I. Instructions to Bidders (ITB)

Section II. Bid Data Sheet (BDS)

Section III. Evaluation and Qualification CriteriaSection V. Eligible CountriesSection VI. Employer’s Requirements

Section IV. Bidding Forms

Section VII. General Conditions of Contract (GCC)

Section VIII. Particular Conditions of Contract (SCC)

Section IX. Contract Forms

October 27, 2015October 27, 2015 1414Business Outreach Seminar in Nay Pyi Taw, Republic of the Union of Business Outreach Seminar in Nay Pyi Taw, Republic of the Union of MyanmarMyanmar

Bidding and Contract formsBidding and Contract forms

Bidding FormsBidding Forms– Letter of BidLetter of Bid– Schedules of Rates and PricesSchedules of Rates and Prices– Technical Proposal– Bidder Information Sheet– Party to JVA Information Sheet– Historical Contract Non-Performance– Current Contract Commitments/Works in

Progress– Financial Situation– Experience – General & Specific– Forms of Bid Security (Bank Guarantee)– Manufacturer’s Authorization

Contract Forms Once completed, will form part of the Contract.

– Performance Security

– Advance Payment Security


PLAY BY THE RULES

Part II


Important Provisions Important Provisions Eligibility (ITB 4)- You are not allowed to participate if

– You are in a Conflict of Interest situation with regards to this particular tender

– Your are a State Owned Enterprise that is not legally, financially autonomous and does not operate under commercial law

– By compliance with a UN Security Council Sanctions, Borrower’s country prohibits any import of goods from, or payments to, your country, person, or entity and/or prohibits payments to your firm or for goods your are offering

– You are under sanction by the Bank or other MDBs relating to fraud and corruption

– If you are not fulfilling legal requirements as required by the country e.g. paying taxes


What circumstances would be regarded as conflict of interest

Providing goods resulting from consulting services provided by yourself or affiliate

Submitting more than one bid as individual or JV. Does not include subcontractors

Close family or business relationship with staff of implementing agency

Directly or indirectly controls or is controlled by another bidder

Receives or has received subsidy from another bidder Has the same legal representative as another bidder


State owned enterprise may participate under following

circumstances Can demonstrate that they are legally, financial and

managerially autonomous (Submit all legal documents and Bank will assess)

Not bidding for a contract under its supervising ministry In agreement with the Bank if works are scattered and

remote such that it is not feasible to obtain competitive bids

In areas of conflict or strife where it is not practical for private sector to operate effectively


Documents Comprising the BidDocuments Comprising the Bid

(a) Letter of Bid (b) Completed schedules (c) Bid Security or Bid Securing

Declaration; (d) Alternative bids, if permissible; (e) Written confirmation authorizing

the signatory of the Bid to commit the Bidder;

(f) Documentary evidence that the Plant and Installation Services offered are eligible (country of origin declaration form);

(g) Documentary evidence establishing Bidder’s eligibility & qualifications to perform the contract;

(h) Documentary evidence that the Plant & Installation Services offered conform to the Bidding Document (substantial responsiveness of proposal of work

requirements and completion time);

(i) In the case of a bid submitted by a Joint Venture, – JV agreement, or letter of intent to enter

into a JVA including – a draft agreement, indicating at least

the parts of the Plant to be executed by the respective partners;

(j) List name and nationality of the proposed subcontractors, including manufacturers; and

(k) any other document required in the BDS


Important Provisions Important Provisions (2)

Deadline for seeking clarifications

– no later than twenty-eight (28) days prior to the deadline for submission of bids (ITB 7.1)

Pre-bid meetings + site visits

– to obtain all information that may be necessary for preparing the bid and entering into a contract

Period of Validity of Bids

– Bids should be valid for the period specified by the Purhaser



Deadline for bid submission (ITB 24)

– Late bids are rejected (Attention to bids sent through post)

Withdrawal/Modification of bids:

– No bid may be withdrawn, substituted, or modified in the interval between the deadline for submission of bids and the expiration of the period of bid validity (ITB 25.3)

Confidentiality

– Any attempt by a Bidder to influence the Employer in the evaluation of the bids or Contract award decisions may result in the rejection of its bid (ITB 27.2).



Employer’s requests for clarifications

– If a Bidder does not provide clarifications of its bid by the date and time set in the Employer’s request for clarification, its bid may be rejected (ITB 28.1)

Bid Price

– Fixed Price: A bid submitted with an adjustable price quotation when the Employer requested a fixed price, will be treated as non responsive and rejected.

– Adjustable Price, A bid submitted with a fixed price quotation when the Employer requested an adjustable, will not be rejected, but the price adjustment will be treated as zero.



Bid Security (BS)Bid Security (BS) Validity of Bid Security– Important to show bidder is serious

– Normally between 0.5-2% of bid price

– Shall be valid for twenty-eight days (28) beyond

the original validity period of the bid.

– Any bid not accompanied by a substantially

responsive bid security shall be rejected as non

responsive.

– Bid security should be in name of bidder NOT

agent.

– The bid security may be forfeited if:

• the Bid is withdrawn during the period of bid

validity or• the successful Bidder fails to (i) sign the

Contract; or (ii) furnish a performance security.

You are killing your bid if The bid security is not included in the

bid The BS is not for the full amount The BS is not for the entire bid

validity period The BS refers to: The wrong bidder (in joint ventures,

all partners must be listed); The wrong Employer; The wrong contract; Only one lot (when the bid is for

several lots)


Important Provisions (6)

Arithmetical errors– If the Bidder that submitted the lowest evaluated bid does not

accept the correction of errors, its bid shall be declared non-responsive.

Technical Responsiveness– The bid that does not meet minimum acceptable standards of

completeness, consistency and detail, and the specified minimum (or maximum, as the case may be) requirements for specified functional guarantees, will be rejected for non responsiveness


Important Provisions (7)Fraudulent and Corrupt Practices

Types of F&C Practices– Corrupt practice

– Fraudulent practice

– Collusive practice

– Coercive practice

– Obstructive practice

Bank Sanctions– Reject the proposal for award

– Declare misprocurement and cancel the portion of the loan allocated to a contract if a representative of the Borrower is involved without the Borrower taking timely and appropriate action

– Declare firm or individual ineligible, indefinitely or for a stated period of time • (i) to be awarded a Bank-financed contract;

and • (ii) to be a nominated sub-contractor,

consultant, supplier, or service provider in a Bank-financed contract

LIST OF DEBARRED FIRMS & INDIVIDUALS

http://www.worldbank.org/debarrOctober 27, 2015October 27, 2015 2626Business Outreach Seminar in Nay Pyi Taw, Republic of Business Outreach Seminar in Nay Pyi Taw, Republic of

the Union of Myanmarthe Union of Myanmar

Anti-corruption HotlineAnti-corruption Hotline

•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: [email protected]

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

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

Working for a world free of poverty

Critical and Important ProvisionsEvaluation and Qualification

Criteria (Section III) Three types of criteria used in evaluation of

bids Exclusion/Eligibility Criteria as defined

above Financial Capacity Technical Capacity


Qualification Criteria- Financial Capacity

Bidders should be financially sound to take on contracts

Documentary evidence to be provided to include audited financial statements, balance sheets and letters from Banks


Qualification Criteria- Technical Capacity

Directly related to the subject matter of contract

Bidder should have technical and logistical capacity to deliver within contract time

Documentary evidence may include evidence of similar contracts, ownership or plans to own/hire specialized equipment, key staff qualifications (for installation)


How can bidders enhance their qualification (1)

Joint venture (JV) with other bidders. This can be for specific contract or period of time

Experience of all JV members will be taken into account during evaluation

JV to nominate leader and leader has to meet specified minimum qualification

All documents –letter of submission, bid security etc- to be in name of JV

JV is bound to the Employer/Purchaser


How can bidders enhance their qualification (2)

Enter into subcontractor or association type relationships with other bidders

Loose arrangement for specific tender or period of time Only qualification of main bidder will be taken into account In specific circumstances where scope is varied,

subcontractor experience may be taken into account Subcontractor is not bound to the Employer/Purchaser Bid security to be in the name of the main contractor not

subcontractor or agent


Typical qualification criteria that may be used under specific

tenders: Meet exclusion/eligibility criteria Have turnover of at least equal to the estimated contract

amount (Your estimate) Must have successfully completed 1-2 similar contracts in

the past 3-5 years (or specific reasonable value of contract could be specified)

Must have logistical capacity to deliver the goods or provide plans to acquire the logistical capacity to deliver goods on time. Delivery plan may be required


Who will carry out Procurement under Grid Extension Component

Project Management Office (PMO). Set up within MoEP the PMO with technical inputs from user utilities (YESC, MESC and ESE), will be responsible for:

◦ Defining contract packages of goods and services◦ Preparing procurement plan and updates thereof◦ Preparing bidding documents◦ Coordinating bid evaluation◦ Requesting approval of evaluation reports from Government internal approval

bodies as necessary◦ Seeking No Objection from the Bank◦ Contract implementation and ensuring goods received are of required quality as per

contract.

34

Scope of goods and accessories to be procured under NEP Grid

Distribution transformers Poles Medium voltage conductors ABC conductors Meter boxes Insulators Ex centra et centra (etc)


What will be the approach to procure these goods? (1)

Supply and delivery of goods and accessories to defined locations

As at now , the agreement is that installation will be carried out by government financed contractors

Goods have been packaged according to market segments – poles, conductors etc separately

Each package will be further divided into Lots based on value, geographical locations and utilities responsibilities


What will be the approach to procure these goods? (2)

Quantities required and value of goods is huge and would require international competition to deliver within project time

International competitive bidding (ICB) will be used to solicit bids. Adverts will be made globally in English

Domestic preference of locally manufactured (not traded) goods of 15% will be given at choice of purchaser and stated in bidding documents

Bidders will be given adequate time of not less than 4 weeks to prepare bids and form any association of their choice


How will these goods be procured? (3)

Bidders will be post qualified. All qualification documents should be in the bid. No prequalification will be done under the project

Award will be based on Lowest Evaluated Bid (LEB). LEB takes into account price and qualification of bidders

Bidders may be awarded a Lot or combination of Lots subject to fulfilling qualification criteria for multiple lots


October 27, 2015October 27, 2015 Business Outreach Seminar in Nay Pyi Taw, Republic of Business Outreach Seminar in Nay Pyi Taw, Republic of the Union of Myanmarthe Union of Myanmar

Building Blocks of a Successful BidBuilding Blocks of a Successful Bid

Pro-active

Zeroactivity

Track Opportunities

Track Opportunities

Play by the RulesPlay by

the RulesKnow

the RulesKnow

the Rules

3939

Know the

Context

Know the

Context

3

2

4

1

Specific Project Procurement Specific Project Procurement InformationInformation UN Development Business – Adverts for all large

value tenders (above US$200,000 for goods, US$300,000 for works and US$100,000 for consultancies)

Bank external website: http://documents.worldbank.org then search for procurement plans for MM projects OR

Procurement plans can be search from : http://documents.worldbank.org/curated/en/docadvancesearch or http://worldbank.org, then go to 'Publication', select 'Documents and Reports', 'Advance Search', select country and document type

Project appraisal Document contains first approved procurement plan

Adverts in local newspapers Borrower implementing agency stated in Project

Appraisal Document40


When In DoubtWhen In Doubt

Ask up front, do NOT guess or assume

Contact the client in writing and seek clarification

Ask for more time if necessary.

If bidding documents have excessive requirements or other unacceptable conditions (restrictions, brand names, etc.), contact the client in writing before the bid closing date, asking for corrections.

Copy the World Bank (TTL , Regional Procurement Manager)

Remember, the WB does not provide clarification on behalf of the client.

Refer to appendix 3 “Guidance to Bidders” of Procurement Guidelines:

4141

Complaints

Address all queries or complaints to the Implementing Agency

Copy the Bank (TTL + Regional Procurement Manager) or write to the Bank directly when borrowers do not respond promptly, or if the communication is a complaint against the Borrower.

Bidders may request a debriefing about his bid



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