CENTRAL EUROPEAN INITIATIVE - CEI JACKHOLT.pdf · 24/09/2012 1 Jan Jackholt, Director Procurement...
Transcript of CENTRAL EUROPEAN INITIATIVE - CEI JACKHOLT.pdf · 24/09/2012 1 Jan Jackholt, Director Procurement...
24/09/2012
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Jan Jackholt, Director
Procurement Function
EBRD
Outreach Seminar
Public Procurement in EBRD Projects
CENTRAL EUROPEAN INITIATIVE - CEI
Trieste, 25-26 september 2012
Project Procurement – Policies & Rules
FIRST SESSION
Welcoming Remarks
SECOND SESSION :
Part 1 EBRD – Introduction & Objectives
Part 2 Business Opportunities - EBRD projects
THIRD SESSION:
Part 3 Procurement and EBRD
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EBRD Introduction & Objectives
PART I:
What are the EBRD’s objectives?
To promote transition to market economies by investing mainly in the
private sector
To mobilise significant foreign direct investment
To support privatisation, restructuring and better municipal services to improve people’s lives
To encourage environmentally sound
and sustainable development
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What is the EBRD?
International financial institution, promotes transition to market economies in 30 countries from central Europe to central Asia
Owned by 63 countries and two inter-governmental institutions
In 2011, the Bank expanded its operations into Egypt, Morocco, Tunisia, & Jordan (Southern & Eastern Mediterranean – SEMED )
Capital base of €30 billion* Cumulative commitments of €71 billion
Unaudited as at 31 December 2011 At the Annual Meeting in Zagreb in May 2010, the Board of Governors approved the
Bank’s capital increase from €20bn to €30bn authorised capital.
EBRD in 2011 – Private vs Public
Invested over €71 bn in 3,389
projects since 1991
Private sector > 77% of EBRD
finance
Debt 85%, Equity 15% of EBRD
finance
€9 bn invested in 2010 in 386
projects
€9.1 bn invested in 2011 in 380
projects
AAA/Aaa rated multilateral
development bank
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Foundations of EBRD operations
Apply sound banking principles to every project
Support but not replace private investors
Advance the transition to a full market economy
Catalyst for change
Every Euro of EBRD investment mobilises a total of 3 Euros for the
project
EBRD investments have attracted an additional €114.6
billion from domestic and foreign investors
The EBRD uses funding donated by member governments and institutions to assist project preparation and catalyse foreign investment
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Shareholding of the EBRD
USA 10%
Japan 9%
EBRD Region excluding EU
members 8%
Others 11%
EU [25] countries
62%
A network of 36 offices in 30 countries
More than half our bankers are based in the region
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2012 ABV by region
Eastern Europe
& Caucasus
11%
Central Europe
& Baltics
8%
Turkey
13%
Central Asia
9%
South-eastern
Europe
19%
Russia
40%
Cumulative commitments €75.2 bn
EBRD finances diverse range of enterprises
Cumulative commitments €75.2 bn Unaudited as at 30 June 2012
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How does the EBRD finance?
Loans of varying maturities at floating or fixed rates
Equity investments, including equity funds
Guarantees to help borrowers gain access to financing
Sound banking principles applied to projects
Each project requires:
Careful assessment of risk/rewards for all parties
Commercial viability
Good prospect of
returns
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Advancing transition to market economies
EBRD projects should promote:
Expansion of competitive markets, including private ownership
Stronger institutional and legal framework
Sound corporate governance
Structural reforms
Respect for people and environment
Response to global financial crisis
Increase in planned investment: €6 to €9 bn
Recapitalisation of sound banks
Expanded Trade Facilitation Programme
Financing energy and infrastructure projects
Corporate Support Facility: €250 m
Greater collaboration with other IFIs
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Environmental mandate
Every project is screened for
environmental impact
Around 17% of total
commitments are designed to
make environmental
improvements
EBRD takes account of the environment in all its operations
Business Opportunities in EBRD
Financed Projects in the Region
PART II
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EBRD in the region
Albania
BiH
Bulgaria
Croatia
RFY Macedonia
Montenegro
Romania
Serbia
Albania
Projects 2001-11
No. of projects
(April 2012)
56
Net business volume €683.7 million
Total project value € 2.4 billion
Cumulative disbursements €530.4 million
Portfolio in private sector 58%
Corporate 21%
Energy 36%
Financial institutions 7%
Infrastructure 36%
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Bosnia and Herzegovina
Projects 2001-11
No. of projects
(April 2012)
100
Net business volume € 1.4 billion
Total project value € 3.1 billion
Gross disbursements €871.2 million
Portfolio in private sector 24%
Corporate 9%
Energy 10%
Financial institutions 21%
Infrastructure 60%
Bulgaria
Projects 2001-11
No. of projects
(April 2012)
205
Net business volume € 2.5 billion
Total project value € 8.2 billion
Gross disbursements € 2.2 billion
Portfolio in private sector 92%
Corporate 37%
Energy 25%
Financial institutions 29%
Infrastructure 9%
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Croatia
Projects 2001-11
No. of projects
(April 2012)
138
Net business volume € 2.6 billion
Total project value € 6.9 billion
Gross disbursements € 2.2 billion
Portfolio in private sector 63%
Corporate 26%
Energy 20%
Financial institutions 24%
Infrastructure 30%
FRY Macedonia
Projects 2001-11
No. of projects
(April 2012)
77
Net business volume € 964.8 million
Total project value € 2.04 billion
Gross disbursements € 492.7 million
Portfolio in private sector 39%
Corporate 12%
Energy 30%
Financial institutions 9%
Infrastructure 49%
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Montenegro
Projects 2001-11
No. of projects
(April 2012)
31
Net business volume € 295.2 million
Total project value € 547.8 million
Gross disbursements € 149.0 million
Portfolio in private sector 41%
Corporate 27%
Energy 13%
Financial institutions 25%
Infrastructure 35%
Serbia
Projects 2001-11
No. of projects
(April 2012)
188
Net business volume € 3.0 billion
Total project value € 6.6 billion
Gross disbursements € 2.0 billion
Portfolio in private sector 45%
Corporate 18%
Energy 17%
Financial institutions 26%
Infrastructure 39%
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2011 Procurement Statistics
Key findings in procurement for 2011
• 219 contracts worth €1,645 million were signed, with EBRD’s financing
totalling €1,055 million (NSD administered contract excluded)
• Number of signed contracts doubled in comparison with 2010
• 81% of all contracts (87% value) applied Bank’s open tendering
procedure
• 805 tenders from 49 countries received on the Bank’s financed contracts
• 53 contracts worth €109 million were signed under the six Nuclear
Safety and Decommissioning Funds managed by NSD
• Additional €826 million of various contract amendments has been
approved by the relevant Fund Assemblies
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Key findings in procurement for 2011
Value Tenderers from the six most successful tendering countries (India, Italy, Kazakhstan, Romania, Russia and Ukraine) won a total of €1 billion worth of contracts
Number
Tenderers from six most successful tendering countries (Albania, Bosnia and Herzegovina, Italy, Kazakhstan, Romania, Russia) won a total of 121 contracts
Share
70 per cent of all tenders were submitted by tenderers from countries of operations. They won 162 contracts worth €968 million
Five year dynamics
Public Sector
• Contracts 669
• Total value €7.12 billion
• EBRD financed €4.54 billion
The highest total amount of contract value:
• Russia €1.62 billion
• Ukraine €1.18 billion
• Romania €0.63 billion
• Kazakhstan €0.61 billion
• Bosnia and Herzegovina €0.56 billion
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PROCUREMENT and EBRD : General
Considerations
PART III:
.
Examples of goods and works procured
under Bank funded public projects (1)
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, air traffic control and navigation
equipment, motorway construction, management information
systems
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.
Examples of goods and works procured
under Bank funded public projects (2)
Power and Energy Efficiency
– Power transmission lines and substations, distribution control
systems, power stations and sub-components, meters, energy
efficiency equipment, refurbishment of plants, management
information systems
Nuclear Safety
.
Technical Co-operation Funds
Bank Loans
Bank Administrative Budget
Consultancy services funded through:
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.
Compare with other IFI’s
1 IBRD/IDA, AfDB, AsDB, IADB main objective
Reduce poverty
2 Beneficiaries/clients
Predominantly Sovereign Loan
3 Funding also provided for…
“Non bankable” projects like education, health, structural reforms etc.
.
EBRD’s Procurement Policies and Rules
Detailed rules for public sector
– Open tendering is the norm
Policies and objectives for private sector
– Follow normal acceptable commercial practices
Consultant services
– Competitive selection
Guidance to Tenderers (including remedies)
Includes a clause for exception to the PP&R
Separate policy for selection of concessionaires (4.4 Private
sector)
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.
Procurement of Goods and Works
Open tendering
– all interested firms may submit tenders
– pre-qualification
– two-stage tendering for complex requirements
– 95% by value of all EBRD financed contracts
All other methods are exceptions to be justified to the Board of Directors
– Direct Contracting, Selective Tender, ‘Shopping’, Local procedures
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EBRD Public procurement principles
The Bank shares the same principles as other IFIs but/and….
– Aligned to principles of WTO Government Procurement Agreement
– Eligibility to participate is open to firms from all countries including non-shareholder countries (except countries subject to UN Chapter VII sanctions)
– Only restriction is capability to fulfil the contract
– No domestic preference allowed
– Internationally recognised contracts can be used
– The Bank’s PP&R are not aligned to the EU Directives but both are aligned to the GPA
– Specific rules for sub-sovereign clients introduced 2009
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.
Sub sovereign public sector projects
Example, Municipals and state owned enterprises can
not disregard national law. In Sovereign projects the
provision of the Loan Agreement supersedes Local
Law.
PP&R now reflects experience from sub-sovereign
projects
2009 issue includes adjustment to Incoterms, tender
prices, Currency and Language provisions
.
EBRD Procurement rules are important…
For the client and the project
– economy and accountability
For the Bank’s shareholders
– Articles of Agreement: open to all countries
For the Business Community
– fairness and transparency
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.
The Client’s role during implementation
The client is responsible for all aspects of the
procurement of contracts. It invites, receives and
evaluates tenders and awards contracts which in all
cases are concluded between the client and the
supplier or contractor
.
The Bank’s role during implementation
Public Sector Operations
– The Bank reviews and monitors the client’s tender process and contract administration to ensure that procurement is carried out in accordance with agreed procedures. The Bank reviews complaints
Private Sector Operations
– The Bank undertakes due diligence and monitors contract administration to ensure that fair market prices are obtained
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Where to find the opportunities?
• Where to find information on opportunities:
– check www.ebrd.com
– check national press
– Know your market i.e. client
• What to look for on ebrd.com:
– Project Pipeline
– General Procurement Notices (GPN)
– Invitation for Prequalification or for Tender
Strategy for winning contracts
• Be focussed and selective
• Explore sub-contracting or joint venture (JV) opportunities
• Respond to the GPN and build your knowledge
• Read “Annex 1 - Guidance to Tenderers” of the
Procurement Policies and Rules
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Strategy for winning contracts
• Don’t be too clever when preparing your tender
(comply with the requirements) !!!
• Does your company meet the qualification criteria?
Form JV
• Make sure to provide answers to all questions and
submit all required documentation
• Review documents early and submit questions or
issues in writing, if necessary copy the Bank
Tenderer’s recourse
• Do not attempt to influence tender evaluation
process. The evaluation process is confidential
• If unsuccessful, ask the client for a debriefing
• Complaints should be sent to the client with a copy
to the Director of the Banking Department Team
and the Director of Procurement using the Bank’s
procurement complaint website
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.
EBRD “review and remedies procedures” (1)
Client is responsible for the procurement process.
Tenderers may raise issues regarding the tender documents, or the process, prior to tender opening with the client and copy the Bank.
The Bank reviews all steps in the process and provides its “no objection”
Evaluation process is confidential
If unsuccessful ask the client for a debriefing
Complaints should be sent to the client with a copy to the Director of the Banking Department Team and Director of the Procurement Department
.
EBRD “review and remedies procedures” (2)
All procurement complaints are investigated by the
Bank’s Procurement Department
All complaint are then reviewed by the Bank’s
Procurement Complaints Committee.
The Bank may decide not to finance a contract
The Bank has no modalities for issuing compensation
awards.
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.
Prohibited Practices
All allegations of Prohibited Practices are investigated
by the Bank’s Chief Compliance Officer
The Chief Compliance Officer will for substantiated
cases bring the findings to the Bank’s Enforcement
Committee .
The Bank may decide to apply any of the Enforcement
Actions available. One of these is debarment.
IFI’s have now agreed upon cross-debarment.
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Advancing the transition
EBRD projects should promote:
Expansion of competitive markets, including private
ownership
Stronger institutional and legal framework
Sound corporate governance
Structural reforms
Respect for people and environment
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.
The EBRD Public Procurement Legal Transition
Programme
“Joint Venture” between
the EBRD Procurement
Department and the
Bank’s Legal Transition
Team
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The Legal Transition Team and Procurement
Department cooperation focuses on … building
institutional capacity of clients
in procurement process
standard training toolbox to
assist clients
standard assessment
measures to evaluate risks in
national legal frameworks and
practice
dialogue with governments to
improve frameworks and the
implementation of the
projects
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.
Legal transition – Procurement (1)
In 2010 EBRD conducted its first PP assessment in its
countries of operations which included a review of
remedies systems
http://www.ebrd.com/pages/research/publications/new
sletters/lit102.shtml
.
2010 EBRD Public Procurement Legal Framework
Assessment – Initial Findings
‘law on the books’
quality of PP legislation
tentative results
EU member states that aim for full compliance with EU public procurement directives have achieved at least a satisfactory level of compliance with international standards, only Hungary scored high compliance
South-eastern European countries, along with Turkey, Georgia, and Mongolia introduced new laws and visibly struggle with implementation issues and institution building
In other countries where legislative reform may have been started procurement laws do not yet comply with international standards
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.
2010 EBRD Public Procurement Legal Framework
Assessment – Initial Findings
‘law in practice’
quality of PP local practice
tentative results
Average 15% Implementation gap – a gap between the score on the PP legislation quality and the PP local practice quality
Implementation gap has been found largest in Western Balkan countries
Lacking data in Azerbaijan, Turkmenistan and Uzbekistan
. 60
The EBRD PP Assessment:
quality of PP legislation in selected countries
Hungary
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Turkey
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Kazakhstan
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Legend:
1 = Accountability
2 = Integrity
3 = Transparency
4 = Competition
5 = Efficiency of the contract
6 = Economy of the process
7 = Proportionality
8 = Uniformity
9 = Stability
10 = Flexibility
11 = Enforceability
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.
Legal transition – Procurement (2)
In 2011 EBRD and UNCITRAL are launching a joint
programme involving workshops, GAP analysis and
reform of public procurement legal framework in
seven countries. Benchmark is UNCITRAL model law.
.
Legal transition – Procurement (3)
Our aim is to sign
Memorandum of
Understanding with all
our countries of
operations to promote
policy dialogue and
exchange of
experience
Federal Antimonopoly Services,
Russian Federation. Signing 2010
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.
Transition impact of good procurement
Increased competitive pressure is likely to improve the efficiency with which resources are used, demand is satisfied, and innovation is stimulated.
Through interactions of the project entity with suppliers and clients .
A project may result in increased private ownership through privatisation, or new private provision of goods and services.
A project may help to create or reform governmental or private institutions, policies and practices whose function is to enhance entrepreneurship, and the efficiency of resource allocation.
Skill transfers are often complementary to other transition-related project impacts such as institution-building
.