Winning Aid-Funded Business

1

• Winning Aid-Funded Business
• A training course delivered by Nigel Peters,
  Director of the UKTI Aid-Funded Business Service

UKCDS UUK London 5 November 2012
2
The Bureaucratic Bits

• Where is the Project Information?
• Registrations
• Getting short-listed
• Tendering

3
WBG RDBs General points

• Project Cycle is the same
• Loans not grants
• Borrowing Country will be your client and will
  procure to according to guidelines (main
  exception is ADB Technical Assistance which is
  procured by ADB)
• Websites will have a 3 year country lending plan
  (slightly different names for each Bank)
• Typically 2-3 project documents growing in
  information as the project develops (again
  slightly different names)
• Tender notices on their website
• 7030 consultancy/goods for UK companies
• 7030 technical/price matrix consultancy
  evaluation
• Registration DACON useful but not obligatory for
  WBG AfDB. ADB have their own system (CRS)

4
The Project Cycle
5
The Project Cycle Procurement

• Typically 12-24 months duration
• Consultancy opportunities at all phases, but if
  getting in early (e.g. 1- Identification/2-
  Preparation) beware exclusion re conflict of
  interest for the later stages where the larger
  opportunities will lie
• The key documents on the World Bank website are
• Country Partnership Strategy (CPS) a 3 year plan
  which will give you details on the sectors the
  WBG will prioritise and very useful background
  information on the country
• Project Information Document (PID) the first
  time you will see detailed project information.
  Is this project for me? Start finding a local
  partner?
• Project Appraisal Document (PAD) more detailed
  updated information
• From PID onwards there will be an entry in the
  Monthly Operational Summary (MOS)
• As the project proceeds to 5-Implementation
  stage, there will be a General Procurement Notice
  (GPN) followed by Specific Procurement Notices
  (SPN) for Expressions of Interest (EOI),
  Prequalification (PQ) or invitations to bid (for
  goods). These are now advertised on the World
  Bank website as well as through composite
  subscription websites such as UN Development
  Business (www.devbusiness.com) and dgMarket
  (www.dgmarket.com)

6
The Project Cycle Procurement

• Inter-American Development Bank
• Similar documents to World Bank but different
  terminology. All are on the IDB website
  www.iadb.org
• Country Operational Strategy (COS)
• Project Profile
• Monthly Operational Summary (MOS)
• Procurement Plan
• Proposal for Loan Agreement (PAL)
• General Procurement Notice (GPN) ICB above
  250,000
• Specific Procurement Notice (SPN)
• No need for registration, DACON little used

7
The Project Cycle Procurement

• Asian Development Bank www.adb.org
• Country Operations Business Plans (useful
  background for sector priorities etc)
• Opportunities Consulting Services Browse by
  country Select country, sector, size of project
  (background documents and procurement plan will
  be attached where available). Both proposed and
  approved projects can be searched.
• For TA, e-sourcing allows electronic submission
  of technical financial proposals
• Register for email alerts of procurement
  opportunities CSRN Consultancy Services
  Recruitment Notices

8
The Project Cycle Procurement

• 1 Identification short term consultancy (Bank)
• 2 Preparation short/medium term consultancy
  (Borrower)
• 3 Appraisal short term consultancy (Bank)
• 4 Negotiation n/a
• 5 Implementation Main consultancy, contracting
  and supply of goods (Borrower)
• technical assistance (ADB only, otherwise
  Borrower)
• 6 Evaluation short term consultancy (Bank)

9
How the World Regional Development Banks work

• Provides loans to Developing countries,
  therefore
• REMEMBER Beneficiary Government is the client,
  not the Bank itself
• The only exceptions are for some feasibility
  studies, project evaluation etc where the World
  Bank HQ in Washington DC will procure directly,
  for where a registration on DACON is recommended.
  Otherwise there is no registration system.
  However the ADB procures all technical
  assistance projects centrally for which it has
  its own registration system (CMS)

10
World Bank Monthly Operational Summary
11
World Bank Monthly Operational Summary

• Mozambique
• Water, Sanitation and Flood Protection
• (R) Water Services and Institutional Support
  (WASIS) Additional Financing The objectives are
  to
• increase water service coverage in the cities of
  Beira, Nampula, Quelimane, and Pemba under the
  delegated management framework
• establish an institutional and regulatory
  framework for water supply in smaller cities and
  towns. Negotiations scheduled for 10 August 2010.
  Environmental Assessment Category B. Project
  P120546. US 34.0/13.1 (IDA Credit/AUSL).
  Consultants will be required. Fundo de
  Investimento e Patrimonio do Abastecimento de
  Agua (FIPAG), Av. 25 de Setembro, 942, Maputo,
  Mozambique, Tel [phone], Fax (25-81)
  498-881, Contact Nelson Beete, Chairman

12
World Bank Typical EOI advert

• INVITATION FOR EXPRESSION OF INTEREST
•  Country - Pakistan
• Project - Water Sector Capacity Building and
  Advisory Services Project (WCAP)
• Agency - Project Management and Policy
  Implementation Unit (PMPIU)
• Title - Consulting Services for Feasibility Study
  of Underground Dams
•  The Government of Pakistan has secured soft term
  loan (IDA Credit) of US 38.00 Million from the
  World Bank to fund 100 cost of the WCAP. The
  PMPIU at the Ministry of Water and Power is the
  principal implementing and coordinating agency
  whereas, Indus River System Authority, Water and
  Power Development Authority and Infrastructure
  Project Development Facility are the key
  implementing agencies of the WCAP.
•  A part of the IDA credit has been earmarked for
  the procurement of consultancy services to
  identify potential sites for construction of
  underground dams of 0.15-0.20 MAF capacity and to
  undertake comprehensive feasibility study of two
  selected pilot projects.
•  Interested consulting firms are required to
  submit their Expression of Interest giving
  general profile of the firm and information on
  relevant experience of work in and outside the
  country, relevant qualified and experienced
  personnel available for the assignment by
  January 06, 2010 to Project Director, WCAP/PMPIU
  on the under mentioned mailing address.
•  A consulting firm will be selected in accordance
  with the procedures set out in the World Bank's
  Guidelines Selection and Employment of
  Consultants by World Bank Borrowers, May 2004,
  revised October 2006, using the QCBS method.
•  Firms who had forwarded EOIs in response to our
  earlier advertisement are required to apply
  afresh in view of revised scope of work and
  change in method of selection.
•  Project Director
• WCAP/PMPIU
• Plot No. 6 (office of Chief Engineering Adviser)
• Sector G-5/1, Near Old MNA Hostel Islamabad
• Telephone [phone]
• Facsimile 92 51 9244599
• Email asjadimtiazali_at_yahoo.com

13
WBG Suppliers FY2011

• Country Contract Values m
• PR China 3,079 (
• South Africa 1,145
• India 823
• Brazil 808
• Spain 467
• Argentina 405
• United Kingdom 191 (1.4)
• Note prior review contracts only

14
IADB Turnkey Contracting
15
Asian DevelopmentBank
Consultancy in 2010 a) Loan Consultancy 258m.
Procured by recipient country b) Technical
Assistance Programmes 159m. Procured by ADB HQ,
Manila. c) Staff Consultants 33m. Procured by
ADB HQ Manila, openly procured on website only
since September 2010. d) Consultants must
register on the ADB Consultants Management System
(CMS). This replaces DACON for ADB only.
Companies will need to register individuals as
well when bidding. Basic registration has 15
minute cut-off. Once registered can complete
EOIs online. Full registration, 30 minute
cut-off, if successful only.
16
Asian DevelopmentBank

• Consultancy Summary
• Tenders open to companies from ADB member
  countries only. Companies must also only employ
  nationals from member countries
• ADB want more competition in the Pacific islands
  (will accept Caribbean experience), Afghanistan,
  Cambodia Pakistan
• Newly introduced Indefinate Delivery Contracts
  (similar to Framework Contracts)
• Companies can also be awarded individual
  consultancies

17
ADB Country Strategy Summary
18
ADB Email Alerts
19
ADB Specific Procurement Notice (SPN)
20
AfricanDevelopment Bank

• HQ in Tunis, Tunisia (www.afdb.org)
• In 2011, Bank Group loan, grant, and other
  approvals totalled approx UA 5.72 billion. The
  UK, through DFID committed 567 million for
  2011-2013
• UK holds a 1.7 share in the Bank
• Working Languages are English and French
• All procurement notices posted on AfDB website in
  the Business Bulletin.
• Consultants Register on AfDB DACON Database
• UKTI Liaison Officer, Alan Morrison, based at
  the British Embassy in Tunis

21
www.AfDB.org procurement pageemail alerts
22
Procurement notices on the website
23
(No Transcript)
24
Quarterly MOS in the Business Bulletin on the
website
25
Quarterly MOS in the Business Bulletin on the
website
26
Caribbean Development Bank

• HQ in Barbados (www.caribank.org)
• In 2011 the CDB approved 165.0 million in loans,
  a decrease of 40 on the previous year reflecting
  concerns over regional debt levels
• Borrowing-member countries Anguilla, Antiqua and
  Barbuda, The Bahamas, Barbados, Belize, British
  Virgin Islands, Cayman Islands, Dominica,
  Grenada, Guyana, Haiti, Jamaica, Montserrat, St.
  Kitts and Nevis, St. Lucia, St. Vincent and the
  Grenadines, Trinidad and Tobago and the Turks and
  Caicos Islands
• Consultants Register on CDB Website
• UKTI Liaison Officer, Hadford Howell, based at
  the British High Commission

27
Caribbean Development Bank

• First Project approved in 2011
• St. Lucia Rehabilitation and Reconstruction
  Project
• Home / Projects Programmes / Approved
  Projects / Reconstruction, St. Lucia
• Borrower Government of St. Lucia Country St.
  Lucia Executing Agency Ministry of
  Communications, Works, Transport and Public
  Utilities Loan Amount USD17.960 million Summary
  of Project Description To assist the Government
  in recovering from the impact of Hurricane Tomas
  through the rehabilitation and reconstruction of
  critical infrastructure. Benefits The main
  objective of the Project is to assist the
  Government of St. Lucia in recovering from the
  impact of Hurricane Tomas, whilst reducing risks
  associated with landslide and flood hazards.

28
Caribbean Development Bank

• Contract awards (inc. TA) to UK companies
• 2009 2010 2011 3 Year
• No. Contracts 5 11 5 21 4.7
• Total No. Contracts 117 179 153 449
• Value (US) 1.6 13.0 1.6 16.2 11.0
• Total value (US) 33.1 61.4 53.2 147.7

29
Caribbean Development Bank

• Contracts are advertised as follows
• Newspaper of wide circulation in country of
  recipient
• Development Business www.devbusiness.com
• CDB website www.caribank.org
• This is typical for most aid agencies
• Response time
• PQs/Bids for goods and works generally not less
  than 6 weeks but may go up to 12 weeks depending
  on complexity
• Consultants EOIs, 14 days minimum Proposals
  4 weeks to 3 months depending on complexity

30
The World Regional DBs Summary

• Develop strategy (donors, countries of
  interest/sectors) your local UKTI team can help
• Proactively identify suitable projects. Follow
  them through the project cycle. Subscribe to
  tender alert services directly from the bank
  websites and also consider composite sites such
  as UN Development Business/DG Market. UKTI
  Liaison officers can help with project
  tracking/obtaining documents.
• Make initial contact with client and task/project
  team leader (may be HQ or country based)
• Build the right team. Identify potential partners
  in country. UKTI developing country based teams
  can help.

31
UKTI Liaison Officers at the World Regional DBs

• World Inter-American DB (Washington DC)
• Stuart Baird Justin Kersey
• Asian DB (Manila)
• Fidel Ventura
• African DB (Tunis)
• Alan Morrison
• Caribbean DB (Barbados)
• Hadford Howell
• Stuart Baird in Washington provides a newsletter
  and targeted project information under the OMIS
  system, and all the others will help with ad hoc
  enquiries and advice. We also organise Missions
  to these cities on a regular basis.

32
EuropeAid

• HQ in Brussels, Missions Worldwide
  (http//ec.europa.eu/europeaid/index_en.htm)
• Procurement totaled almost 11 billion in 2011
  and will increase to 13 billion by 2013
• Approx 80/20 split between procurement of
  Services/Goods Works
• UKTI Liaison team based at UKREP (i.e. the
  British Embassy to the EU) in Brussels can
  provide information on upcoming projects, project
  pipelines, assistance with finding consortium
  partners, help with bidding tactics and strategy,
  project/procurement design and management and
  assistance with dispute settlements

33
EuropeAid work with us
34
Linked-In EuropeAid Contracts Group join it!
35
Specific opportunities Example Services
(forecast)
INDIVIDUAL SERVICE CONTRACT FORECAST Support to
e-government (G2C) in the RF Russian Federation
1. Publication reference EuropeAid/126204/C/SER/R
U 2. Procedure Restricted 3. Programme Tacis 4.
Financing Tacis Russia Action Programme 2006 5.
Contracting Authority The European Community,
represented by the Commission of the European
Communities, for and on behalf of the government
of the Russian Federation. 6. Nature of
contract Fee-based 7. Contract description The
overall objective is to contribute to the
creation of a common European and Russian
Information Space and to contribute to the
establishment of an EU-Russia Information Society
dialogue. The specific objective of the project
is, inter alia, to assist the Russian government
in implementing the 'Conception of e-government
in the Russian Federation until 2010'. This may
include a. assistance to establish
multi-functional centers to improve
administrative efficiency. Delivery of state
services to citizens and fulfillment of state
functions electronically shall be prepared. b.
assistance to optimize administrative procedures.
Transparency and accountability of the public
administration shall be improved by developing a
clear legal basis underlying e-government and
information policy. c. assistance to designing a
unified strategy and IT-architecture for the
introduction of e-government. 8. Indicative
maximum budget EUR 2,000,000.00 9. Intended
timing of publication January 2008 10. Additional
information Not applicable
36
EuropeAid Best Practice and Tips Before
Participating

• Talk to UKRep for advice at any stage. Monthly
  newsletter and tailored project information
  available through OMIS
• Monitor tender opportunities on EU websites
• Read the EUs development strategies for
  individual countries
• Do desk research on procurement guidelines
• Get a feel of what the EU wants tenderers to
  deliver
• Explore the EUs project delivery instruments
  (e.g.Logframes)
• Get an idea on who your competitors/consortium
  partners are twice yearly seminars in Brussels
  organised by the Perm Reps include speed dating
  with consultants from across the EU. Pan-European
  consortia are favoured

37
EBRD

• International financial institution, promotes
  transition to market economies in 29 countries
  from central Europe to central Asia. In 2011
  agreed to extend operations to the southern
  eastern Mediterranean (initially Egypt, Morocco,
  Tunisia and Jordan)
• Capital base of 20 billion
• Remit to promote transition to market economies
  by investing mainly in the private sector,
  mobilise significant foreign direct investment,
  support privatisation, restructuring and better
  municipal services to improve peoples lives and
  encourage environmentally sound and sustainable
  development
• HQ in London. English is the working language.
  UKTI AFBS can give some commercial help via the
  UK Executive Directors Office

38
Consultants required to support the EBRDs
projects (loans or equity)
EBRD
Provides loan or equity to finance
infrastructure, funding to Banks etc. (Project)
Consultant support for Project Preparation
Consultant support for Project Implementation
To Clients (80 Private and 20 Public)
39
Consultancy services required for project
preparation implementation (examples)
Project Preparation Project Implementation
Market Demand Studies (various) Feasibility Study (sector engineers, environmental, financial, legal experts) Financial and Technical Due Diligence (various) Environmental Impact Assessment (environmental experts) Legal Due Diligence (legal experts) FOPIP - Financial and Operational Performance Improvement Programme (financial, management information system, corporate restructuring experts) Corporate Development Programme (financial, legal, management, IT, business planning experts) Project Implementation Unit (procurement assistance supervision of works (procurement experts, engineers) Creditworthiness Enhancement Programme (financial, legal, sector regulation experts) Lenders supervision (various)

40
Overview of Selection Methods for Consultant
Selection
Direct Selection (below EUR 75,000) Selection from Shortlist (EUR 75,000 EUR 300,000) Proposals (EUR 300,000 and over)
Select consultant Negotiations Contract Calls for expressions of interest (not obligatory) Long list Shortlist Select consultant Negotiations Contract Calls for expressions of interest Long list Shortlist Proposal Select consultant Negotiations Contract
41
Contract Awards by EBRD and Clientsto British
Consultants in 2007-2011
Consultancy Contracts Awarded by EBRD Consultancy Contracts Awarded by EBRD Consultancy Contract Awards to British Consultants Consultancy Contract Awards to British Consultants Consultancy Contract Awards to British Consultants
Value, million Number Value, of Total Value Number
2011 169.49 2,797 48.27 28.48 840
2010 175.00 2,820 44.54 25.45 773
2009 137.17 2,821 39.52 28.81 796
2008 120.22 2,434 36.17 30.09 729
2007 136.18 2,377 55.18 40.52 683
42
EBRD and British Consultants in 2011

• Wide range of expertise including information
  technology, financial, legal, integrity,
  engineering, environmental, procurement across
  all sectors and countries of operations
• 16.54 m out of 48.27 m of contract awards to
  British consultants were for the Banks
  institutional needs e.g. IT development and
  training (this amounts to 60 of the value of all
  EBRD contracts for institutional needs)
• 75 of the Banks internal consultants engaged in
  2011 (i.e. those required to work from the
  Banks Headquarters) were British

43
www.ebrd.com
Projects Countries Sectors
Working with us Project financing Procurement
(see next!) Trade Loan syndications Advice and
support Jobs at the EBRD
About us What we do Who we are Where we are
Who we work with
Procurement Notices (see next slides!)
44
ebrd.com procurement notices

• Search by contract type
• Consultancy
• Services
• Corporate goods
• works and services
• Project goods,
• works and services

Search by sector
Search by country

• Search Results
• Issue Date
• Deadline
• Country
• Notice Title
• Sector
• Notice Type

45
Procurement Notice ebrd.com
Procurement Notice
Sign-up for Email alerts!
46
Strategy for Getting Contracts

• Is your product or service needed?
• Where are the opportunities?
• Be focussed and selective - comparative advantage
• Monitor Procurement Opportunities
• Subscribe to EBRD eSelection and Procurement
  Alerts
• Contact client agency
• Compete adhere to tender submit responsive
  tender
• Learn from experience
• Explore subcontracting opportunities joint
  venture opportunities local investment

47
Untied Bilaterals Procurement webnet.oecd.org/Unt
iedAidWeb
48
DFID

• UK Bilateral Aid to Developing Countries
  www.dfid.gov.uk
• Review of aid policy, both multilateral and
  bilateral, March 2011
• Goods bought by contracted Procurement Agents
  (Crown Agents, Charles Kendall, IPA)
• In 2010/11 spent 7.8billion (up to 10.6billion
  by 2014/5). A cumulative growth of 27 .
  Ring-fenced budget but because of slow-down in
  economy, 0.7 of GDP for aid target means
  cutting 1.1b from original targets
• Operational plans 2011-15 for all country
  programmes now on the website
• If you are considering an investment in a
  developing country and/or have an innovative
  product or service, talk to DFIDs Private Sector
  Department

49
DFID

• DFID Supplier Portal introduced early 2011
• An electronic platform to hold registration
  details
• Enables e-tendering and e-procurement
• Electronic invoices
• Access the portal via the DFID website
• Tenders also published the Business Link website
  Contract Finder see www.contractfinder.business
  link.gov.uk

50
DFID

• Projects Pipeline and Lists of Successful
  Contractors including Frameworks and PEAKS now
  searchable via link from DFID website to
  Contracts Finder
• Project Pipeline is updated every 6 months,
  currently 124 projects worth over 1billion
• Increased focus on fragile and conflict affected
  states leading to more importance on duty of care
  for contractors
• Move to payment by results leading to more
  output based ToR
• DFID funds the Humanitarian Innovation Fund to
  help suppliers of innovative products

51
www.ausaid.gov.au/consultnet

• ConsultNet
• ConsultNet is a free email alert keeping
  subscribers informed of the latest business news
  and events in Australia's aid program.
• Once subscribed, emails will be sent to you
  notifying you of important new business
  opportunities and changes to AusAID's business
  policies and procedures
• Subscribe
• To subscribe - enter your email address below and
  click send.
• A confirmation email will be sent to you advising
  that your subscription has been successful. If
  you do not receive this email within 24 hours of
  subscribing, please contact the Webmaster.

52
German Aid www.GIZ.de

• Procurement
• GIZ involves suitable firms from the private
  sector of the economy when implementing
  commissions. It charges consultancy companies
  with the production of expert reports and
  implementation of complex consultancy projects.
  It awards orders to national and international
  suppliers for procuring technical equipment and
  materials.
• You will find further information on this and
  details of the procedures applied by GTZ for
  awarding appropriate contracts under Contract
  Award Procedure.
• Under Important Documents you will also find the
  general terms and conditions of business, the
  conditions for application, and other useful
  documents and information on preparing offers and
  accounting procedures.
• You will find information on public tenders in
  the service sector and other forthcoming
  invitations to tender with shortlists that have
  not yet been finalised under Tender Information
  (only available in German).
• If you have received a password from us within
  the scope of an on-going invitation to tender,
  you can also access the documents relevant to you
  via the Tender Information page (only available
  in German). Access to these documents is only
  possible for companies participating in the
  tender procedure.

53
WWW.MCC.gov Becoming a one-stop-shop for bidders
MCC is transforming its procurement website to
better reach potential bidders http//www.mcc.gov/
procurement/index.php
54
Tracking Projects all Donors

• UN Development Business (UNDB) covers all
  development banks plus UN
• www.devbusiness.com
• DG Market www.dgmarket.com
• United Nations Global Marketplace (UNGM) UN only
  www.ungm.org
• DEVEX all projects plus good daily news letter
  www.devex.com

55
UN Development Business Procurement Notice
56
(No Transcript)
57
Devex.Com Newsletter(free)
58
Devex.Com Free Daily tender alerts
59
Devex.Com Short-list and contract awards (free)
60
UKTI has partnered with Devex to help firms track
tenders from over 250 donor agencies around the
world. Through this partnership, you can take
advantage of a 40 discount, lowering the rate to
join the already1,000 member organizations for
only 600 USD per year. To learn more about
the Tender Tracking Account, please visit
www.devex.com/en/tender-tracking If you would
like to join, please contact Erin
Houston Senior Associate, Devex erin.houston_at_devex
.com 1.202.746.8445
61
E-Consultancy

• Ability to register maintain your own
  personalised account
• Subscribe for electronic notification about new
  opportunities by industry sector and area of
  expertise
• Submit expressions of interest proposals
  on-line
• Now operated by EBRD, World Bank, ADB, DFID to
  name but a few

62
Strategy for Getting Contracts

• Is your product or service needed?
• Where are the opportunities?
• Be focussed and selective - comparative advantage
• Consider marketing yourself to existing
  contractors as a sub-contractor to get started
• Monitor Procurement Opportunities
• Subscribe to eSelection if available and
  Procurement Alerts
• Contact client agency if tender rules allow
• Compete adhere to tender submit responsive
  tender
• Learn from experience
• Explore subcontracting opportunities joint
  venture opportunities local investment
• At each stage UKTI, either through your local
  region, the AFBS nationally or our Liaison
  Officers can help you!

63
Some lessons from a company looking at AFB for
the first time...

• This UK company works in the transportation
  sector
• First steps....(took 3 months)
• Started with blank sheet of paper
• Identified 7 key targets World Bank, EU, UN,
  Bilateral agencies, MDBs, NGOs, Global Fund
• Spoke to UKTI Liaison Officers to get a feel
  for opportunity
• Key was to FOCUS - homed in on UN (2009
  Statistical Yearbook)
• Commissioned OMISs from UKTI Liaison officers
  based in New York, Geneva, Copenhagen, Vienna
  (and Budapest)

64
The value of the OMISs .....

• Liaison Officers targeted relevant agencies
• Arranged specific visit programme
• Organised relevant, senior level meetings
• Helped establish direct relationships with UN
• Enabled rapid answers to
• Is there an opportunity for our product?
• If so, what do we need to do to access it?
• Distinguished theoretical from practical
  opportunities

65
More research ... the Eureka moment!

• Registered with UNGM (selected agencies) with
  specific UNCCS codes and subscribed to a tender
  alert service (500), but still a difficulty in
  identifying tenders in the sub-sector this
  company specialises in, so...
• Visited UNPD in New York (EMRS)
• Discovered global peacekeeping operations (pkos)
  issued separate tenders one for goods another
  for shipment
• Focussed almost exclusively on pkos
• Needed separate registration to get on local
  vendor roster (nb 3 registrations in total!!)
• Cracked it tender opportunities arrived!!
• The company has now won over 4m worth of
  business in the last 18 months