Norman Cameron

Head of Procurement

Caribbean Development Bank

Canadian Trade &

Investment Mission

SEMINAR ON DOING BUSINESS

WITH CDB April 14 – 17, 2014

Overview of Procurement

• What are MDBs?

• A multilateral development bank (MDB) is an institution, created by a group of countries, that provides financing and professional advice for the purpose of development. MDBs have large memberships including both developed donor countries and developing borrower countries. MDBs finance projects in the form of long-term loans at market rates, very-long-term loans (also known as credits) below market rates, and through grants

MDBs

Who are the MDBs ?

The following are usually

classified as the main MDBs:

• World Bank (WB)

• European Investment Bank(EIB)

• Asian Development Bank (ADB)

• European Bank for Reconstruction and Development (EBRD)

• Inter-American Development Bank Group (IDB, IADB)

• African Development Bank (AfDB)

• Islamic Development Bank (IsDB)

There are also several "sub

regional" MDBs These

include:

• CAF - Latin America Development Bank (CAF)

• Caribbean Development Bank (CDB)

• Central American Bank for Economic Integration (CABEI)

• East African Development Bank (EADB)

• West African Development Bank (BOAD)

• Black Sea Trade and Development Bank (BSTDB)

• Eurasian Development Bank (EDB)

LOCATION

• Caribbean Development Bank

• Single Office - Headquarters

• Wildey, Barbados, W.I.

• Approximately 200 staff

• Staff members spread across CDB’s

membership

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BACKGROUND

• The CDB was established in 1970 to contribute to

the harmonious economic growth and

development of the member countries in the

Caribbean.

• CDB intends to be the leading catalyst for

development resources into the region, working

in an efficient responsive & collaborative manner

with our borrowing members countries (BMCs)

and other development partners, towards the

systematic reduction of poverty in their countries,

through social & economic development. 5

CDB HAS FINANCED SPECIFIC

PROJECTS IN FIELDS OF:

• Agriculture

• Development of Capital Markets

• Disaster Risk Reduction/ Mitigation

• Education

• Environmental Sustainability

• Export Services

• Fisheries

• Gender Equality

• Housing/Shelter Development

• Infrastructure & Related Services

• Health

• Manufacturing

• Marketing

• Mining & Refining

• Poverty Reduction

• Power & Energy

• Public Finances Management

• Social Protection

• Transportation

• Waste Management

• Water & Sewerage

• Tourism

• Climate Change

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CDB Financing Resources

• 70-80% of project cost financed

• Two main sources of financing

– Ordinary Capital Resources (OCR) [hard]

– Special Funds Resources (SFR) [soft]

Financing can be and is sometimes a

“blend of OCR and SFR funds

CDB’s Financing Resources

OCR

• Members’ capital subscriptions

• Retained earnings from operations

• Borrowings on capital markets

• Lines of Credit from commercial and other

multi-lateral institutions

(CDB has a better Credit Rating than its BMCs. This

allows the Bank to borrow on capital markets at more

favourable interest rates than its BMCs can)

CDB’s Financing Resources

OCR (cont’d)

• Current interest rate: 4.1% p.a. variable

• Grace period: up to 5 years

• Maturity period: Up to 22 years (including

grace)

CDB’s Financing Resources

SFR

• Contributions of donors (not exclusively

members)

• Special purpose or trust funds being

managed/administered by CDB

(e.g. CARTFund)

• Retained earnings

• Non-market borrowings

TECHNICAL ASSISTANCE

ACTIVITIES

• Technical Assistance Utilizes our SFR

– Very low interest (as low as 2%), long term (up

to 10 yrs. grace plus 20 yrs. to repay)

– Specific areas of intervention mostly in the

social sectors targeted at the poor

• Basic Needs Trust Fund – primarily small

community based sub-projects. The maximum

value of a sub-project is US$600,000

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TECHNICAL ASSISTANCE

ACTIVITIES

• Caribbean Technological Consultancy

Services (CTCS)

– Engages regional professionals as consultants

for short term assistance (maximum duration of

assignment 15 days) for hands on assignments

to micro, small and medium size enterprises

– Nominal fee paid by recipient of assistance

– CDB identifies from registered professionals,

pays fees and meets transportation and

accommodation costs 12

MEMBER COUNTRIES • Regional Borrowing

• Anguilla

• Antigua & Barbuda

• Bahamas

• Barbados

• British Virgin Islands

• Belize

• Cayman Islands

• Dominica

• Grenada

• Guyana

• Republic of Haiti

• Jamaica

• Montserrat

• St. Kitts & Nevis

• St. Lucia

• St. Vincent & the Grenadines

• Suriname

• Trinidad & Tobago

• Turks & Caicos Islands

• Regional Non-Borrowing • Colombia

• Mexico

• Venezuela

• Non-Regional Non-Borrowing • Canada

• Peoples Republic of China

• Germany

• Italy

• United Kingdom

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CDB AT A GLANCE

DECEMBER 31, 2013

• Net cumulative loans, contingent

loans, equity and grants approved:

USD 4.0 billion

• Cumulative disbursements:

USD 3.5 billion

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PROCUREMENT

• “The proceeds of financing in the ordinary

operations of the Bank shall be used only for

procurement, in the territories of members, of

goods and services produced in those

territories” – Article 15(h) of Agreement

establishing CDB (Charter)

• CDB Definition of Procurement: The process

whereby goods, works and services required in

a project are acquired by contract from

suppliers, contractors and consultants

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GENERAL PROCUREMENT

CONSIDERATIONS • (a) the need for high quality services

• (b) the need for economy and efficiency in the implementation of the project, including the procurement of the goods, works and services involved;

• (c) CDB’s interest in giving all eligible bidders and consultants from eligible countries the same information and equal opportunity to compete in providing goods, works and services financed by CDB;

• (d) CDB’s interest in encouraging the development of contracting and consulting in the Borrowing member countries of CDB and manufacturing industries in the Region; and

• (e) the importance of transparency in the procurement process.

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ELIGIBILITY

• To foster competition CDB permits bodies corporate and individuals from all of its member countries, and any other countries determined by CDB, to offer goods, works, and services for CDB-financed projects. Any conditions for participation shall be limited to those that are essential to ensure the capability of the body corporate or individual to fulfill the contract in question.

• Where financing is from resources of any of the other multilateral financing institutions, CDB permits bodies corporate and individuals from member countries of CDB and other countries designated by such institutions in the agreement with CDB, to offer goods, works, and services for CDB-financed projects.

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AWARDS TO Canadian Firms

(Last 5 Years)

2009 2010 2011 2012 2013 Totals

%

No of Canadian Contracts

7 9 7 9 4 36 5

Total No. Contracts

117 179 153 135 131 715

Value USD (mn) [Can.]

1.5 1.2 1.9 2.5 1.4 8.5 3.7

Total Value USD (mn)

33.1 61.4 53.2 48.4 31.3 227.4

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ADVERTISING

• The invitation to pre-qualify, bid or submit

Expressions of Interest is advertised in: – newspaper of wide circulation in country of

recipient or Governments free portal website

– Development Business Online, a publication of the

United Nations http://www.devbusiness.com

– CDB website http://www.caribank.org

– PATH: Home/Projects &

Programmes/Procurement

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RESPONSE TIME

• Pre-qualification/Bids for goods and works

– generally not less than 6 weeks but may

go up to 12 weeks depending on

complexity

• Consultants’ proposals – 4 weeks to 3

months from date of posting of the

invitation. (Depends on complexity of

assignment) 20

QUALIFICATION

CRITERIA - WORKS

• Experience

–General

–Particular

• Personnel Capabilities

• Equipment Capabilities

• Financial Position

• Litigation History

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EVALUATION OF

CONSULTANT’S PROPOSAL

• Based on:

–Technical competence

–Qualification and experience of staff

–Local and regional experience on

similar projects

–Financial capability

–Existing commitments

–Transfer of knowledge

–Participation by National Experts

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JOINT VENTURES/

ASSOCIATIONS

• Any entity may bid individually or in joint

venture (confirming joint and several

liability) with one or more entities from

eligible countries

• CDB does not accept conditions of

bidding which require mandatory joint

ventures or other forms of mandatory

association

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COST OF WORKS AND

GOODS

• Are of satisfactory quality and are compatible

with the balance of the project

• Will be delivered or completed in a timely

fashion

• Are priced so as not to adversely affect the

economic and financial viability of the project

• The above are major considerations whether

CDB-funded or Borrower-funded

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Methods of Selection of

Consultants • QCBS –Technical Proposals achieving above

a pre-determined score provides 0.8 weight and Financial Proposal, 0.2) . Firm achieving highest weighted score invited to negotiate.

• Other Methods

– Quality Based Selection (QBS)

– Selection Under Fixed Budget (FBS)

– Least Cost Selection

– Selection Based on Consultant’s Qualifications (CQS)

– Single Source Selection (SSS) 25

REGISTRATION

• Consultants are requested to register

and update their information through the

CDB website. http://www.caribank.org

• Registration is by category and

consultants are registered in the

General Consultancies and the Project

Preparation Assistance Facility

categories.

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