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Winning Aid-Funded Business

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Title: PowerPoint Presentation Author: Nigel Peters Last modified by: Buckmaster, Sarah Created Date: 10/16/2003 9:15:06 AM Document presentation format – PowerPoint PPT presentation

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Title: 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
AFBS Presentations
  • What is Aid-Funded Business?
  • Why do it?
  • Who are the major potential clients?
  • Where and in what sectors do they work?
  • What sort of companies win work for them?
  • An overview of all the main international
    financial institutions (IFIs) and the United
    Nations agencies (UN)
  • Lunch break
  • Sector case-study Education
  • The Bureaucratic Bits
  • Where is the Project Information?
  • Registration Requirements,
  • Getting Shortlisted
  • Bidding
  • Follow-up support from UKTI in your region

3
What is Aid-Funded Business?
  • Commercial Opportunities created by development
    humanitarian aid programmes funded through the
    multilateral bilateral development agencies,
    and the United Nations
  • WORTH APPROX US70-100 BILLIONPER YEAR
  • The UKTI Aid-Funded Business Service is a
    dedicated UKTI service to help UK companies win
    aid-funded business

4
Broken down by IFI/Agency
Donor Comittments latest FY
World Bank Group US35.3 billion
EC (EuropeAid EIB) US26.4 billion (19billion)
Asian Development Bank US17.5 billion
Inter-American Dev Bank US15.5 billion
United Nations US14.5 billion
EBRD US10.3billion (EUR7.9billion)
DFID US8.9 billion (5.8billion)
African Development Bank US6.6 billion (UA4.1 billion)
Caribbean Development Bank US0.2 billion
TOTAL US135.2 billion (representing c.US70-100b of business opps)
Remember, apart from DFID this excludes untied bilaterals Remember, apart from DFID this excludes untied bilaterals
5
So which Sectors are important? World Bank Group
Example
6
Who are the organisations?
United Nations Peacekeeping, Famine, Natural
Disasters, Emergency Aid
World Bank Long term loans for development
projects such as Bridges, Dams, Hospitals,
Consultancy in areas such as Good Governance,
Security, Healthcare reform etc (Similar to the
Asian, African, Inter-American and Caribbean
Development Banks)
EC EuropeAid similar function as World
Bank but grants not loans EIB ta and long term
loans
Aid/Development Assistance for Developing
Countries
EBRD Investments in private sector (transition
economies)
Bilateral Donors DFID, MCC, GIZ, AusAID, SIDA etc
7
Where do I fit in?
  • Tenders and contracts are generally broken down
    into three distinct areas
  • Consultants (services) for all stages of the
    project cycle, but if getting in early beware
    conflict of interest rules. Consortium/sub-contra
    cts. Firms can supply individuals.
  • Contractors (works) - gradual move to project
    management fee based contracts for large
    projects. For traditional works contracting
    project broken into small packages, no
    short-listing, lowest price wins.
  • Suppliers of goods - cheapest bid according to
    specification. Procurement agents sometimes used.
    Need to ensure your product is known to project
    consultant, especially if innovative

8
Does the size of my company matter?
  • No, but it is horses for courses!
  • You can win business as an individual, up to a
    multinational
  • But it is very different business
  • e.g. in consultancy
  • an individual consultant is frequently appointed
    by the Development Banks to undertake project
    identification and evaluation
  • Price Waterhouse Coopers run a multi-million
    pound construction transparency project for DFID
  • and in supplies
  • a small company in Somerset supplies vehicle
    spare parts to the UN in Sudan
  • Pearson supply educational textbooks for
    EuropeAid projects across Africa

9
The 7030 Guideline for UK Companies
  • For Development Aid (Multilateral Development
    Banks, EuropeAid, EBRD, Bilaterals)
  • Roughly 70 of the business opportunities for UK
    companies will be for consultancy
  • The other 30 will be for the supply of goods
  • For Humanitarian Aid (mainly the UN)
  • Roughly 30 of the business opportunities for UK
    companies will be for consultancy (especially
    for individuals)
  • The other 70 will be for the supply of goods
  • And overall very little for works contractors,
    but there is the trend towards project management
    for a fee...

10
The 7030 rule for consultants
  • Consultancy tenders are normally evaluated
    according to a technical price matrix based on a
    two envelope system
  • The first envelope that is opened is the
    technical offer
  • 70 of the marks are awarded for the technical
    quality of the tender
  • Only those reaching a certain threshold then
    have their price envelopes opened
  • The prices are combined with the technical marks
    such that the overall weighting of the bid is
    7030 technical price (8020 is also commonly
    used)
  • Although price is the minor component, you will
    still not win the bid if your price is outside of
    the project budget (some agencies tell you this
    budget, others do not!)

11
How the Banks work
  • Provide loans and grants to Developing countries
  • REMEMBER Beneficiary Government is normally
    your client, not the Bank itself
  • Though the Banks employ Consultants directly for
    feasibility studies, project evaluation etc
  • Capitalisation was increased as a response to
    the global financial crisis leading to record
    levels of loans, but this will decrease

12
Role of the Bank in procurement
  • Who is responsible for the award of contracts?

Your Client
Loan/Credit
The Lender e.g. World Bank
The Borrower E.g. Ministry of Finance
Implementation
Procurement Interface
Suppliers
Implementing Unit
Implementation Assistance
Reporting Relationships
Consultants
Contractual Relationships
13
The Project Cycle
14
So, Why should I do it?
  • Springboard into new markets or regions and it
    offers opportunity to internationalise your
    business
  • Test a new, difficult market whilst cash is
    coming in
  • You are being paid, though you need to understand
    the cash flow/invoicing arrangements which will
    vary by agency
  • You can take control of this business stream
    (planning, planning, planning)
  • Allows you to build local contacts and establish
    a local presence
  • Its a good reference


15
...and the points to remember
  • Development projects often have long lead times
  • Payment while guaranteed can sometimes be slow
  • Most contracts are subject to competitive
    tendering on a fairly global basis
  • For consultants especially early information is
    essential
  • If the first you see of a project is the tender
    notice you are normally too late!
  • Companies based in developing countries will
    sometimes have a preference (price based for
    goods, experience based for consultants)
  • It is important to work out where the purchasing
    decision is being taken and market accordingly.
    The trend is for decision making to be devolved
    to the recipient country and/or IFI country
    office

16
Am I ready for Aid-Funded Business?
  • Do you have
  • An international track record and a commitment
    to international growth
  • Management capability
  • Marketing skills
  • Good Financial standing, and normally a minimum
    of 3 years audited accounts
  • Market knowledge
  • Operational capabilities skills in delivering
    products or services and working in cross-border
    partnerships.................... ??????
  • Experience of working for other large clients
  • If you dont have all of these, but the will is
    there...UKTI can provide help in many of these
    areas

17
Tips for SMEs new to Aid-Funded Business (AFB)
  • Find out who is winning AFB projects and look for
    sub-contracting opportunities. Most IFIs have
    lists of awarded contracts on their websites.
  • For consultants, identify the Framework consortia
    and offer your services to them.
  • Both DFID and EBRD are based in UK and offer easy
    access.
  • Both EBRD and CDB offer a good range of small
    contract sizes which are often below the limit
    for ICB
  • ADB advertise small value staff consultancies and
    other TA on their website and procure from HQ in
    Manila
  • For goods and equipment, the UN offer small
    contract sizes often below 30,000, which means
    they can negotiate with 3 preferred suppliers.
  • Contact the 3 procurement agents listed on the
    DFID website , who will also be procuring goods
    and equipment for other IFIs.
  • AFBS missions are a very cost-effective way of
    starting off!

18
The World Regional Development Banks
  • World Bank Group
  • Asian
  • Inter-American
  • African
  • Caribbean

19
Regional Donors
EBRD
ADB
CDB
AfDB
IADB
ADB
20
Does the size of the client matter?
  • Bank Disbursements (US billion)
  • World Bank Group 43
  • Asian 16
  • Inter-American 16
  • African 12
  • European (EBRD) 10
  • Caribbean 0.4

21
WBG RDBs some general points
  • Project Cycle is the same
  • Loans not grants
  • Borrowing Country will be your client and will
    procure 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, not used by IDB. Others have their own
    systems

22
World Bank
  • HQ in Washington D.C. (www.worldbank.org)
  • Committed US35.3 billion in loans, credits and
    grants to its members in FY2011
  • Majority of opportunity for Consultants however
    most projects have a requirement to procure
    equipment
  • Works in all the developing and transitional
    economies
  • Project Information Advice available from
    British Embassy on a bi-weekly basis including
    procurement notices
  • UKTI Liaison Officers, Stuart Baird Justin
    Kersey, based at the British Embassy in
    Washington D.C.

23
World Bank
  • The World Bank Group (WBG) comprises 5
    organisations of which IDA and IBRD offer the
    main procurement opportunities
  • PROCUREMENT
  • IDA International Development Association, very
    concessional loans to the least developed
    countries (e.g. Bangladesh, Tanzania). 35-40 year
    repayment period, 10 year grace period. Funds
    from donors such as the UK (DFID).
  • IBRD International Bank for Reconstruction
    Development, market based loans to middle income
    countries (such as Brazil, Mexico). Funds from
    the international capital markets (AAA rated).
  • However, for INVESTORS.
  • IFC International Finance Corporation, loan and
    equity financing for private sector projects.
    Investment maximum of 25 of project cost.
    Limited due diligence type consultancy
    opportunities, identification of private sector
    investors as clients.
  • MIGA Multilateral Investment Guarantee Agency,
    insures investors against non-commercial risk
    (similar to ECGD) and ICSID International Centre
    for the Settlement of Investment Disputes

24
IBRD Top 10 Borrowers Fiscal 2011
The World Bank Annual Report 2011
Billions
25
IDA Top 10 Borrowers Fiscal 2011
The World Bank Annual Report 2011
Millions
26
IBRD and IDA Lending by Region Fiscal 2011
The World Bank Annual Report 2011
Share of Total lending of 43 Billion
27
UK Performance on WB Procurement Contracts
28
Asian DevelopmentBank
  • HQ in Manila, Philippines (www.adb.org)
  • Last year the ADB approved 17.5 billion in
    loans.
  • Working Language is English
  • All procurement notices posted on ADB website and
    you can receive email alerts
  • New Consultant Management System
  • Goods/Equipment often bought locally companies
    should check Opportunities section of ADB
    website
  • UKTI Liaison Officer, Fidel Ventura, based at the
    British Embassy in Manila

29
Asian Development Bank Commitments 2011
Country US amount (millions)
Vietnam 3,604.6
India 3,126.7
Pakistan 2,886.0
Bangladesh 2,292.5
China P.R. 1,592.9
Uzbekistan 1,398.7
Thailand 1,090.8
Indonesia 805.0
Azerbaijan 643.6
Nepal 344.0
30
Asian DevelopmentBank
  • The ADB long-term plan Strategy 2020, lists 5
    core specialisations for ADB to focus on
  • Infrastructure
  • Environment Climate Change
  • Regional Cooperation Integration
  • Financial Sector Development
  • Education Training
  • By 2020 the aim is for 50 of investments to be
    in the private sector, often by PPPs, where there
    are very good consultancy opportunities

31
Asian DevelopmentBank

2010 2010 2011 2011 Cumulative (as of 31-12-2011) Cumulative (as of 31-12-2011)
Item Amount ( million of total Amount ( million of total Amount ( million of total
Goods Works 5.73 .09 2.12 .03 877.14 .8
Consulting Services 25.47 6.13 22.15 5.21 959.65 11.71
Top UK Firms (Procurement 07-12) Individual Consultants - 33.75 million (543 contracts) Scott Wilson - 18.07 million Roughton International - 9.73 million GHK Consulting - 8.86 million
32
Asian DevelopmentBank
Consultancy tenders Consultancy winners
by country of origin Loan Projects Technical
Assistance India USA Indonesia India
Australia Australia Vietnam UK
Bangladesh Philippines
33
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

34
Inter-AmericanDevelopment Bank
  • HQ in Washington D.C. www.iadb.org
  • The IADB Group approved a record 15.5 billion in
    new financing operations.
  • Covers Central and South America and the
    Caribbean islands (including The Bahamas,
    Barbados, Dominican Republic, Haiti, Jamaica and
    Trinidad and Tobago)
  • UKTI Liaison Officers, Stuart Baird Justin
    Kersey, based at the British Embassy in
    Washington D.C.

35
48 IDB member countries
Finland
Norway
Sweden
Canada
United Kingdom
Denmark
Netherlands
Germany
Belgium
Austria
France
Switzerland
Croatia
Slovenia
Italy
Spain
Portugal
United States
Japan
South Korea
Israel
China
Bahamas
Mexico
Dominican Republic
Jamaica
Haiti
Trinidad and Tobago
Belize
Guatemala
Honduras
Barbados
Nicaragua
El Salvador
Venezuela
Panama
Costa Rica
Guyana
Suriname
Columbia
Ecuador
Brazil
Peru
Bolivia
Paraguay
Argentina
  • 26 Borrowers
  • 22 Non-Borrowers
  • (China, South Korea are new members)

Uruguay
Chile
36
Five strategy pillars for high development
impact focus
Social inclusion Broadening access to services Institution building Integration Climate change
health, education, housing, food and nutrition, base of the pyramid, job creation promoting infrastructure (power, transportation, telecom, water, tourism) and finance (MFIs, SMEs, capital markets, etc.) financial and advisory support for private and sub-national clients trade, natural resources, cross border investments renewable energy, energy efficiency, recycling industries, biofuels
37
Priority areas
  • Poverty reduction
  • Opportunities for the Majority
  • Education and Innovation
  • Water and Sanitation Initiative
  • Sustainable Energy and Climate
  • Change Initiative (SECCI)

38
IADB Loans Guarantees Approved 2011
Country US (millions)
Brazil 4,656.5
Mexico 3,009.7
Argentina 1,682.7
Peru 1,594.4
Colombia 785.2
Ecuador 609.5
...and dont forget..........
Jamaica 328.0
Trinidad Tobago 290.0
Bahamas 131.0
Barbados 70.0
39
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

40
African Development Bank Group Loans Grant
Approvals 2010
Country UA millions (1UA c.1)
Egypt 651
Morocco 519
South Africa 404
Tunisia 297
Ethiopia 224
DR Congo 158
Tanzania 130
Kenya 116
Ghana 109
Senegal 70
41
Medium Term Strategy
  • Stronger Sectoral Emphasis on
  • Governance
  • Infrastructure
  • Private sector development
  • Higher education
  • Special Applicability to
  • Fragile States
  • Regional Integration
  • Agriculture
  • Better integration of
  • Gender
  • Environment
  • Climate Change
  • New Long-Term Strategy to 2020 under preparation,
    but for 2012-2014 the above will be still be
    prioritised but with a greater focus on inclusive
    growth, including promotion of entrepreneurship
    and job creation

42
AfDB Lending by Sector 2011
43
Caribbean Development Bank
44
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

45
Caribbean Development Bank
  • Exclusive focus on the Caribbean (only IADB lends
    more to the region)
  • Largest projects in 2011 were in Barbados 35m
    (education sector), and in St Kitts Nevis 12m
    (debt restructuring)
  • Clear understanding of the problems and dynamics
    of the region
  • 2010 increase in CDBs capital by US1billion,
    will enable a doubling of lending during 2010-19
    if the economic situation allows
  • New strategy 2010-14, priority sectors
  • Education Training Agriculture RD Economic
    Social Infrastructure Private Sector
    Development Social protection Environmental
    Sustainability Disaster Management Climate
    Change Good Governance

46
  • EU external aid (i.e. outside of the EU)
  • Grants delivered by DG DEVCO EuropeAid
  • Loans delivered by the European Investment Bank
    (EIB)
  • Both also deliver technical assistance

47
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

48
About EuropeAid
Size Scope
  • The EU (271 donors) accounts for 60 of all
    development aid
  • The European Commission is the third largest
    donor in the world
  • Disbursements and commitments will continue to
    grow at least until 2013, the figures below show
    procurement by programme in 2010
  • Aid provided to 150 countries and territories on
    a grant basis

IPA Turkey, Western Balkans 1.4
b ENPI Neighbours of the enlarged EU 1.5b
DCI Asia and Latin America 2.4 b EDF
Africa, Caribbean, Pacific 3.65 b

49
EuropeAid 2014-20
Size Scope for the next budgetary period of
2014-20
  • Subject to Parliamentary and Council approval the
    following budgets are proposed

IPA Turkey, Western Balkans 14.1
b ENPI Neighbours of the enlarged EU 18.2
b DCI Asia and Latin America 23.3 b
EDF Africa, Caribbean, Pacific 34.27 b


50
EuropeAid Priority Sectors
Priority sectors of EU Aid-Funded
business - Infrastructure and transport -
Private sector development - Institutional,
administrative reform - Education and
training - Environment - Water - Health - Social
sector / employment
51
Service contracts
About 70 of EuropeAids are service-based Exampl
es for service contracts Capacity Building in
Support of Rule of Law in GeorgiaBudget
2.7m Capacity building support to the African
Forum for Utility Regulators (AFUR) - South
Africa Budget 1.3m Support for the
establishment of Tax Administration Contact
Centre - Serbia MontenegroBudget 1.79m
52
Supply contracts
  • About 30 of the EUs external aid tenders
  • are works and supplies contracts
  • Supplies regularly requested
  • IT equipment incl. software, hardware
  • Vehicles and spare parts
  • RD material (laboratory equipment, material for
    specialised appliances)
  • Border control equipment
  • Environmental technology

53
European Investment Bank (EIB)
  • The EIB was created in 1958 under the Treaty of
    Rome to be the long-term financing institution of
    what later became the EU. See www.eib.org
  • The EIB is a non-profit, EU policy-driven public
    bank which only invests in projects that further
    EU policy objectives. It provides loans not
    grants (that is the area for EuropeAid). Lends up
    to 50 of project cost, with a minimum value of
    EUR 25 million.
  • In 2010, 12 of EIB financing went to projects in
    countries outside of the EU (EUR 8.8 billion).
  • The 2009 Lisbon Treaty changed the statutes to
    allow EIB to undertake technical assistance as a
    core function
  • UKTI Liaison Officer, Jan Soeltenfuss, based at
    UKREP in Brussels

54
European Investment Bank
  • Mandates outside of the EU
  • Pre-Accession EUR8.7 billion over 5 years
  • EU integration e.g. transport, urban
    infrastructure, health, education. Technical
    assistance is a substantial part of this
    programme.
  • Neighbourhood EUR 6 billion in next 3 years
  • Mediterranean (FEMIP) Energy security
    renewables, Water Waste water Transport
    Infrastructure PPPs SME development.
  • Eastern Water, Energy, Transport, telecomms,
    FDI
  • ACP based on EU development priorities.
  • Africa Infrastructure Trust Fund, EUR 400m
    for trans-border regional projects in energy,
    transport, water, telecomms. Includes technical
    assistance. See www.eu-africa-infrastructure-tf.
    net
  • Asia Latin America FDI support

55
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

56
EBRDs objectives achieved through financing the
private sector
  • Invested over 61.8bn in more than 3,164 projects
    since 1991
  • 9.0bn invested in 2010 in 380 projects
  • Private sector gt 78 of EBRD finance
  • Debt 81, Equity 19 of EBRD finance

billion
Annual business volume (ABV)
Net cumulative business volume
Reconciled as at 31 March 2011
57
EBRD Finances diverse range of enterprises
Unaudited as at 31 March 2011
58
Regional focus 2011
59
What is new The expected SEI 3
  • New phase of the Sustainable Energy Initiative
  • Energy efficiency at the forefront marrying
    together private sector and public policy.
  • All projects screened for potential.
  • 25 of portfolio (29 in 2011)
  • Greater emphasis on climate change adaptation and
    resilience.

60
The unexpected SEMED How?
  • Next steps
  • Lengthy governance process in three stages.
  • Bank working with TC now
  • Lend through a Special Fund Q3 onwards
  • Full access Q1 2013?
  • Tailored response to each country
  • Potential of 2.5bn by 2015
  • Uncertainty both from governance process and
    region

61
EBRDs Operations and Consultancy Services
  • EBRD finances projects in both private and public
    sector, providing direct funding for financial
    institutions, infrastructure and other key
    sectors.
  • The Banks investments also help to develop
    skills, improve efficiency and strengthen
    institutions.
  • Within this framework consultancy services are
    provided to support the Banks operations and
    projects.

62
Goods Works Procurement
  • Examples of goods and works procured under EBRD
    funded projects
  • Municipal Infrastructure
  • Waste water treatment plants, pipes, meters,
    pumping stations, sewage plants, process plants,
    incinerators
  • Transportation
  • Rail track maintenance equipment, locomotives,
    signal systems, trams, buses, road construction
  • Power
  • Transmission lines and substations, distribution
    control systems, power stations, meters, energy
    efficiency equipment

63
Middle East Donors
  • The Gulf States are major donors for investment
    and poverty reduction programmes in the Middle
    East, Africa and Asia. They are particularly
    influential in Afghanistan, Yemen, Pakistan,
    Somalia and Sudan. Saudi Arabia, Kuwait, Qatar
    and the UAE have substantial bilateral aid
    programmes.
  • The Islamic Development Bank (IDB) is the
    regions multilateral development bank. Based in
    Jeddah, Saudi Arabia, it approved projects worth
    8.3 billion in 2011. IDBs overall objective is
    to foster the economic development and social
    progress of the 26 borrowing member countries and
    also Muslim communities in non-member countries.
  • UK is not a member, but UK companies can win
    business by entering into a JV with a member
    country company. Also there are a number of
    sectors where IDB accepts no member state
    companies have the right expertise, so
    procurement is then untied.

64
What is bilateral aid?
  • Bilateral Aid from one country. The UK gives
    aid through the Department for International
    Development (DFID)
  • Most countries give untied aid, i.e.
    procurement can be from any country, not just
    from the country giving the aid or the country
    receiving it.
  • The two main exceptions are USA (USAID) and
    Canada (CIDA), though the US also gives untied
    aid through the Millennium Challenge Corporation
    (MCC). If you want to tender for USAID and CIDA
    you must open an office in USA or Canada.
  • British consultants have a good track record of
    winning work from the Scandinavian donors
    (Finland, Sweden, Denmark, Norway), MCC and
    Australia (AusAID).
  • All EU member states aid is untied but you often
    have to bid in their language (e.g. French,
    German)
  • Both MCC (USA) and AusAID are PROACTIVELY seeking
    to widen their range of suppliers and are very
    keen to have more UK companies working on their
    projects

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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

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Bilateral Aid Review
  • The review has focussed UK bilateral aid on fewer
    countries (27) so that support can be targeted
    where it will make the biggest difference and
    where the need is greatest
  • In 2012-13, the top ten aid recipients will be
  • Ethiopia - 300m water, school healthcare
  • India - 280m supporting private sector to
    deliver jobs
  • Pakistan - 267m building peace stability
  • Bangladesh - 210m social services
  • Nigeria - 210m making better use of oil
    revenues
  • Afghanistan - 178m peace, security political
    stability
  • DR Congo - 165m stopping illegal exploitation
    of minerals
  • Tanzania - 160m private sector development
  • Sudan - 140m reducing hunger extreme poverty
  • Kenya - 110m more jobs for young people

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  • The Australian Agency for International
    Development (AusAID) is the principle Australian
    Government agency responsible for managing
    Australia's overseas aid program.
  • The objective of the Australian aid program is to
    assist developing countries reduce poverty and
    achieve sustainable development, in line with
    Australia's national interest.
  • The Aid programme is organised around the
    following key themes seeking faster progress
    towards the Millennium Development Goals
    promoting economic growth ensuring
    environmentally sustainable development building
    long-term partnerships strengthening partner
    countries own systems using evidence-based
    approaches to demonstrate results.
  • 2011 procurement review showed the need to
    improve AusAIDs global market base for
    international development consultancy work

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Countries
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  • Australia's aid programme focuses on the Asia
    Pacific region. They are internationally
    recognised for their leading role in the region,
    particularly in PNG and the Pacific. Their aid is
    even more important given two-thirds of the
    worlds poorsome 800 million peoplelive in the
    Asia Pacific, yet they receive less than one
    third of global aid. Australia also provides
    assistance to Africa, the Middle East, Latin
    America and the Caribbean.  Aid to Africa has
    increased significantly in recent years and now
    represents around five per cent of the aid
    programme.
  • The Australian aid programme has doubled over
    the past 5 years to AUD 4.84 billion in 2011-12
    and on current projections is likely to increase
    to AUD 8.6 billion by2015/16 to reach the
    Governments 0.5 ODA/GNI commitment.

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Please contact PSI_at_MCC.GOV to explore further
71
Where MCC Operates

72
Compact Funding by Sector, in Million USD
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The United Nations Family
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UN PROCUREMENT 2011
  • Total procurement US14.3 billion
  • UK share US417 million (10th position)
  • Overall 5050 goods/services, but
  • remember the 7030 rule, for UK companies the
    focus is more on goods and equipment for
    Humanitarian Aid/Disaster Relief
  • 50 spent in developing countries

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UN CENTRES
  • Nairobi - Environment, Habitat
  • Vienna Industrial Development
  • New York Peacekeeping, UNDP, UNPD
  • Copenhagen - UNICEF
  • Rome - Food and Agriculture
  • Geneva - Health, Emergency Relief
    Rehabilitation
  • UKTI have liaison officers in each of these
    centres, and procurement of goods and services
    likely to be of interest to UK companies is often
    done from here

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NGOs
  • Oxfam are the only UK based NGO with significant
    UK based purchasing, worth c.5m p.a. (other
    NGOs are more decentralised)
  • Water sanitation is their key sector, plus they
    also use freight forwarders a lot
  • Website oxfam.org.uk has all tenders including
    an ethical supply questionnaire
  • Innovation they will talk to companies with
    innovative products but they will always end up
    tendering
  • Important to get your equipment into their
    Equipment catalogue (which is non-branded) e.g.
    water/sanitation equipment tents vehicles
    radios etc
  • They do have framework contracts for products
    they regularly need but there are no guaranteed
    orders
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