WORKSHOP ON WORLD BANK PROCUREMENT POLICIES

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WORKSHOP ON WORLD BANK PROCUREMENT POLICIES
PROCEDURES

• Thursday, September 28, 2006
• Golden Gate Restaurant Ikoyi, Lagos
• Presentation by Chief Bayo Awosemusi, Lead
  Procurement Specialist

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World Bank Operations in Nigeria
The Big Picture

• Bank total Commitment to Nigeria 1.9 billion
• Not less than 75 to be disbursed through
  procurement
• About 350 million through use of Consultants
• About 650 million through Suppliers
• About 420 million for works.

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NG-Portfolio is relatively young offers
opportunities.. (Net Commitments USm)
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THE WORLD BANK

• FOUNDED IN 1944
• INTERNATIONAL BANK FOR RECONSTRUCTION AND
• DEVELOPMENT IBRD
• LENDS AT COMMERCIAL RATES
• INTERNATIONAL DEVELOPMENT ASSOCIATION - IDA
  PROVIDES CREDITS AT RATES LESS THAN 0.75
• INTERNATIONAL FINANCE CORPORATION IFC
• PROVIDES LOANS TO PRIVATE SECTOR
• WEB SITE httpwww.worldbank.org

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THE WORLD BANK

• LENDING INCOME PER CAPITA RANGES
• BELOW US 865 --- IDA
• US 865-1395 --- BLEND IBRD/IDA
• US 1395-5055 --- IBRD
• OVER US 5055 --- NIL
• NIGERIA IDA ONLY

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BANK PROCUREMENT POLICY

• BANKS ARTICLES
• LEND FOR SPECIFIC PROJECTS
• USE FUNDS FOR PURPOSES INTENDED
• ECONOMY AND EFFICIENCY
• COMPETITIVE INTERNATIONAL TRADE
• IMPORTANCE OF PROCUREMENT
• CRITICAL TO PROJECT IMPLEMENTATION
• MEMBER COUNTRIES EXPECTATION BY WAY OF EXPORTS
• PERCEPTION OF FAIRNESS

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PRINCIPLES OF BANK PROCUREMENT GUIDELINES

• NEED FOR ECONOMY AND EFFICIENCY
• NEED TO GIVE ALL ELIGIBLE BIDDERS OPPORTUNITY TO
  COMPLETE
• ENCOURAGE DEVELOPMENT OF LOCAL INDUSTRIES IN
  BORROWING COUNTRY
• IMPORTANCE OF TRANSPARENCY

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PRINCIPLES OF BANK CONSULTANT GUIDELINES

• NEED FOR HIGH QUALITY SERVICE
• NEED FOR ECONOMY AND EFFICIENCY
• NEED TO GIVE QUALIFIED CONSULTANTS FROM ALL
  ELIGIBLE COUNTRIES OPPORTUNITY TO COMPLETE
• ENCOURAGE DEVELOPMENT OF NATIONAL CONSULTANTS IN
  DEVELOPING MEMBER COUNTRIES
• IMPORTANCE OF TRANSPARENCY

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GUIDELINES

• PROCUREMENT UNDER IBRD LOANS AND IDA CREDITS
  (JAN. 95 REVISED JAN. AND AUG. 96, SEPT. 97, JAN.
  99 AND MAY 2004).
• SELECTION AND EMPLOYMENT OF CONSULTANTS (JAN. 97
  REVISED SEPT. 97, JAN. 99 AND MAY 2004).

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GUIDELINES (CONTD)

• ACCUMULATED EXPERIENCE OF BANK/IDA
• GOOD PUBLIC PROCUREMENT PRACTICE ON INTERNATIONAL
  SCALE
• INCORPORATED IN THE LOAN/CREDIT AGREEMENT

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(GUIDELINES CONTD)SECTIONS OF GUIDELINES

• PROCUREMENT
• I INTRODUCTION
• II INTERNATIONAL COMPETITIVE BIDDING (ICB)
• III OTHER METHODS OF PROCUREMENT
• IV ---
• APPENDICES
• 1 BANK REVIEW
• 2 DOMESTIC PREFERENCE
• 3 GUIDANCE TO BIDDERS

• CONSULTANTS
• I INTRODUCTION
• II QUALITY-AND COST-BASED SELECTION (QCBS)
• III OTHER METHODS OF SELECTION
• IV TYPES OF CONTRACTS IMPORTANT PROVISIONS
• APPENDICES
• 1 BANK REVIEW
• 2 DOMESTIC PREFERENCE
• 3 GUIDANCE TO BIDDERS

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THE PROJECT CYCLE
IDENTIFICATION
EVALUATION
PREPARATION
IMPLEMENTATION AND SUPERVISION
APPRAISAL
NEGOTIATION AND BOARD PRESENTATION
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ROLE OF BORROWERS

• SOLELY RESPONSIBLE FOR PROCUREMENT
• PREPARES PROCUREMENT PLAN
• PREPARES AND ISSUES BIDDING DOCUMENTS
• INVITES BIDS/PROPOSALS
• RECEIVES AND EVALUATES BIDS/PROPOSALS
• AWARDS CONTRACTS
• IMPLEMENTS

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ROLE OF BANK

• SUPERVISES THE PROCESS
• ASSISTS BORROWER IN PREPARATION OF PROJECTS
• REVIEWS PROCUREMENT PROCEDURES, ADVERTISING,
  PREQUALIFICATION AND PROCUREMENT DOCUMENTS TO
  ENSURE COMPLIANCE WITH LOAN/CREDIT AGREEMENTS

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ROLE OF BANK (CONTD)

• VERIFIES WITHDRAWAL APPLICATIONS PRIOR TO
  DISBURSEMENTS
• MONITORS PROCUREMENT THROUGH MIS (FORMS 384)
• ADDRESSES COMPLAINTS FROM FIRMS ON PROCUREMENT
  MATTERS

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ROLE OF BANK (CONTD)

• CONTRACTING PARTIES
• BORROWER/IMPLEMENTING AGENCY
• AND
• CONTRACTORS/SUPPLIERS/CONSULTANTS
• BANK IS NOT A PARTY TO THE CONTRACT

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THE PROCUREMENT CYCLE

• PLANNING
• GENERAL NOTICE (ICB)
• BID DOCUMENT PREPARATION
• PERQUALIFICATION (IF REQUIRED)
• ADVERTISING
• BID SUBMITION
• BID OPENNING

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THE PROCUREMENT CYCLE (CONT.)

• BID EVALUATION
• AWARD CONTRACT
• PERFORM CONTRACT
• EVALUATE REPORT

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METHODS OF PROCUREMENT

• INTERNATIONAL COMPETITIVE BIDDING
• LIMITED INTERNATIONAL COMP. BIDDING
• NATIONAL COMPETITIVE BIDDING
• SHOPPING
• FORCE ACCOUNT
• DIRECT CONTRACTING
• UN AGENCIES (UNICEF/ILO/WHO)

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SELECTION MATHODS

• Quality and Cost-Based Selection (QBCS)
• Quality-Based Selection (QBS)
• Selection Under a Fixed Budget
• Least-Cost Selection
• Selection Based on Consultants Qualifications
• Single-Source Selection

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BIDDING DOCUMENTSGOODS

• PURPOSE
• INSTRUCT BIDDERS ON PROCEDURE FOR SUBMISSION OF
  BIDS
• DESCRIBE GOODS OR WORKS TO BE PROCURED
• INFORM THE BIDDERS OF CRITERIA FOR EVALUATION
• DEFINE CONDITIONS OF CONTRACT

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BIDDING DOCUMENT

• COMPONENTS
• INVITATION FOR BIDS
• SECTION II INSTRUCTIONS TO BIDDERS (PROVISIONS
  WHICH ARE TO BE USED UNCHANGED)
• SECTION III BID DATA SHEET (DATA PROVISIONS
  SPECIFIC FOR GOODS TO BE PROCURED)
• SECTION IV GCC WHICH SHALL NOT BE ALTERED

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BIDDING DOCUMENT

• SECTION V SCC SUPPLEMENT GCC AND CONTAIN
  PROVISIONS FOR SPECIFIC CONTRACT
• SECTION VI SCHEDULE OF REQUIREMENTS
• SECTION VII TECHNICAL SPECIFICATIONS
• SECTION VIII SAMPLE FORMS
• SECTION IX ELIGIBILITY FOR PROVISION OF GOODS,
  WORKS, AND SERVICES IN BANK FINANCED PROCUREMENT

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STANDARD BIDDING DOCUMENTS (SMALLER WORKS)

• COMPONENTS
• INVITATION FOR BIDS
• SECTION 1 INSTRUCTION TO BIDDERS
• SECTION 2 FORMS OF BID, QUALIFICATION
  INFORMATION, LETTER OF ACCEPTANCE, AND AGREEMENT
• SECTION 3 CONDITIONS OF CONTRACT
• SECTION 4 CONTRACT DATA
• SECTION 5 SPECIFICATIONS
• SECTION 6 DRAWINGS
• SECTION 7 BILL OF QUANTITIES
• SECTION 8 SECURITY FORMS

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INSTRUCTION TO BIDDERS

• ELIGIBILITY QUALIFICATION
• PROCEDURE FOR CLARIFICATIONS
• BID PREPARATION - FORM
• NUMBER OF COPIES, ADDRESSEE
• LANGUAGE
• PRICING AND CURRENCIES MODIFICATION AND
  WITHDRAWAL
• BID SECURITIES, SURETIES, ETC.

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INSTRUCTION TO BIDDERS (cont.)

• BID EVALUATION CRITERIA AND PROCEDURES
• DOMESTIC/REGIONAL PREFERENCES
• CLOSING DATE
• BID SUBMISSION PROCEDURES
• CORRECTIONS
• BID VALIDITY
• OPENING TIME, DATE, PLACE

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CONDITIONS OF CONTRACT

• RIGHTS AND OBLIGATIONS OF BOTH PARTIES
• PROCEDURE FOR SHIPMENT, INSURANCE INSPECTION,
  DOCUMENTATION
• PROCEDURE FOR MEASUREMENT
• PROCEDURE FOR ALTERATIONS
• PRICE ADJUSTMENT PROCEDURE
• PROCEDURE, TERMS AND CURRENCIES OF PAYMENT
• PROCEDURE FOR PERFORMANCE SECURITIES
• FORCE MAJEURE
• PROCEDURE FOR DAMAGES, PENALTIES FOR DELAY
• PROCEDURE FOR TERMINATION
• MODE AND FORM FOR SETTLING DISPUTES
• APPLICABLE LAW

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SPECIAL CONDITIONS OF CONTRACT

• DEFINITION OF THE PURCHASER/SUPPLIER
• SPECIFIC AMOUNT OF PERFORMANCE SECURITY
• SPECIFIC PROCEDURES FOR INSPECTION TESTING
• SPECIAL REQUIREMENTS FOR INSURANCE
• SPECIFIC PAYMENT TERMS/CURRENCY
• PRICE ADJUSTMENT MECHANISM
• OTHER DELETIONS/ADDITIONS TO GENERAL CONDITIONS

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ASSOCIATION BETWEEN CONSULTANTS

• JOINT VENTURE JOINTLY AND SEVERALLY LIABLE
• BORROWER TO APPROVE ASSOCIATIONS (JOINT VENTURE
  OR SUB-CONSULTANCY) AMONG SHORT-LISTED FIRMS
• BORROWER MAY ENCOURAGE ASSOCIATIONS WITH NATIONAL
  FIRMS (NOT MANDATORY)
• ALL JV MEMBERS MUST SIGN THE CONTRACT
• THE ASSOCIATION SHOULD BE REPRESENTED BY AN
  APPOINTED FIRM

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TIPS ON GETTING CONTRACTS

• LEARN HOW THE BANK OPERATES
• CONTACT BORROWERS OR IMPLEMENTING AGENCIES
• SUBSCRIBE TO AND REVIEW INFORMATION SOURCES THAT
  BEST FIT YOUR NEEDS
• FOLLOW A PROJECT THROUGH EACH STAGE OF THE
  PROJECT CYCLE

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TIPS ON GETTING CONTRACTS

• CHOOSE AMONG PROJECTS AND COUNTRIES AND FOCUS
  YOUR EFFORTS
• PROVIDE IMPLEMENTING AGENCIES ADEQUATE
  INFORMATION ABOUT YOUR COMPANY, PRODUCT AND
  SERVICES
• MAKE DIRECT CONTACTS
• ASSOCIATE/EMPLOY LOCAL AGENTS WHO KNOWS THE
  COUNTRY

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TIPS ON GETTING CONTRACTS

• SUBMIT EOI EARLY
• READ RFP AND BIDDING DOCUMENTS AND EVALUATION
  CRITERIA CAREFULLY
• ASK FOR CLARIFICATIONS WHERE NEEDED
• SUBMIT PRICED COMPETITIVE PROPOSAL
• BIDS AND PROPOSAL SHOULD CONFORM WITH
  BIDS/ASSIGNMENT REQUIREMENT AND CONTRACTUAL
  CONDITIONS STIPULATED IN THE RFP AND BIDDING
  DOCUMENTS

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BUSINESS OPPORTUNITIES

• THE BEST WAY TO BUSSINESS SUCCESS ARE
• Get involved.
• Try as many times as possible
• Examine past failures and make amend.
• Compete by forming joint venture
• Search for market beyond the local environment.
• Appoint agents where necessary.
• Offer competitive price and quality products in a
  timely and efficient manner.

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THE END

• THANK YOU