EIC GENERAL ASSEMBLY - · PDF fileEIC General Assembly, ... The „EIC Pocket Guide ......

EIC GENERAL ASSEMBLY ROTTERDAM, 09 OCTOBER 2015

EIC General Assembly, Rotterdam, 09 October 2015

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OVERVIEW OF RECENT EIC ACTIVITES

Working Group „Contract Conditions”– Meeting with EBRD’s Director of Procurement to discuss MDB policy on “Abnormally Low Tenders”– Meeting with Task Force Leader for new FIDIC Conditions of Contract for Underground Works

Working Group „World Bank Procurement” – EIC comments on the World Bank’s New Procurement Framework

Working Group „Africa”– Meeting with EU Development Commissioner on EIC proposal for revised “Blending 2.0” instrument– Preparation for Joint CICA/EIC Mission to the African Development Bank

FIDIC Annual Conference 2015– EIC presentation on “Integrity Management & Reputational Risk”

Joint FIEC/EIC Working Group “Poland”– FIEC/EIC participation at Parliamentary Hearing of the Sejm’s Road Sub-Committee

New ISO Anti-Bribery Management System– FIEC/EIC participation at latest meeting of the ISO 37001 Project Committee end of September 2015


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MEMBERSHIP ISSUES

EIC is still missing a U.K. Member FederationTalks over a dinner hosted by Pinsent Masons in February in London with several British international contractors have not yet led to thedesired effect

Number of Associate Member Companies remains at 8 companies:Aecom, Cybarco, EY, Langan International, Pilosio, Pinsent Masons, Rambøll, Thales Italy


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EIC INTL CONTRACT STATISTICS 2014TURNOVER

Volume of Turnover of European international contractors in 2014(in million €)


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5EIC General Assembly in Porto

EIC INTL CONTRACT STATISTICS 2014TURNOVER

Volume of “EIC countries’” ODA in 2013 (in million US$)


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PR ACTIVITIES

The „EIC Pocket Guide“ shall provide

readers with a quick and concise overview

on the EIC history, membership,

structure, mission and activities


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WORKING GROUP “CONTRACT CONDITIONS”: FIDIC-ITA TASK GROUP ON UNDERGROUND WORKS


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Country: Bosnia and Herzegovina

Project: Construction of Sarajevo Bypass

Contract: Construction of Josanica-Butila

Procurement method: EBRD Open international tender

Cost estimates: EUR 70,200,000

WORKING GROUP “CONTRACT CONDITIONS”: MDB WORKING GROUP ON ABNORMALLY LOW TENDERS

1 2 3 4 5

56,746,728 59,301,721 66,241,207 67,955,354 69,968,0486 7 8 9

73,270,844 78,208,290 105,576,554 120,295,563

MEAN = 77,507,145 STAND.DEV. = 20,206,178 ALT RISK = NO. 1

EBRD proposes use of arithmetic formula of “Standard Deviation”


11Date: 19-20 November 2015

Heads of Mission: Emre Aykar (CICA President) & Philippe Dessoy (EIC President)

Topics to be discussed:– Reform of the AfDB Procurement Rules - Implementation of the new Procurement Policy

and related challenges

– Public Private Partnerships - The Use of the International Center of Excellence on Concessions and PPP

– How can CICA-EIC contribute to capacity-building in the national private sector

– Development of Infrastructure in Africa, including topics such as professional training and co-financing with Multilateral Development Banks and Development Finance Institutions;

Participants up to date: Companies from BE, FR, NL and TR + 1 ACM

If you like to join, please contact the EIC Secretariat

WORKING GROUP “AFRICA”: JOINT CICA-EIC MISSION TO AFDB – DRAFT PROGRAMME


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WORKING GROUP “WB PROCUREMENT”GENERAL

Final approval of New Procurement Framework by WB Executive Directors on 21 July and implementation of the new rules and regulations is planned for 1st January 2016

Main changes of the new Procurement policy (see also EIC commentary on our Homepage)

TOPIC POSITIVE NEGATIVEALTERNATIVE PROCUREMENT SYSTEMS (APA)

APA instead of Country Procurement SystemsAPA need to run through rigid Bank assessmentBank remains responsible for complaints handling

No exception for high-risk/-value projectsYardstick is “acceptable” (not “equivalent”)Bank has a wide discretion to proceed

SUSTAINABLEPROCUREMENT

Borrower may include sustainability requirements SP is not a mandatory requirementRelated Annex VII is very general

ABNORMALLY LOW BIDS

Borrower has the possibility to reject an ALT following a clarification procedure

Borrower is not obliged to reject ALTBorrower may also increase the Perf. Sec.

INTERNATIONALCOMPETITIVE BIDDING

ICB is the “preferred option” for complex, high-risk and/or high-value contracts, also under APABank has established ICB thresholds by country

ICB is not an obligation for complex, high-risk and/or high-value contracts under APAICB thresholds are subject to review by APM

VALUE FOR MONEY

Value for Money is a core principleAward criteria are “EMAT” and “lowest price”

Related Annex I is very general and provides no methodology to implement VfM

COMPLAINTS & OVERSIGHT

Contract-related complaints are admissibleMandatory thresholds for Prior Review based on procurement risk level

Related Annex II displays some rather vague language (“as appropriate”)


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WORKING GROUP “WB PROCUREMENT” CONTRACT CONDITIONS

Annex IX: Contract Conditions in International Competitive Procurement

– 2.1: ”The contract conditions shall provide an appropriate allocation of responsibilities, risks and liabilities informed by an analysis of which party is better placed to manage the risks, cognizant of the costs and incentives of risk allocation.”

– 2.2: “For international competitive procurement for goods, works, non-consulting services and consulting services, the Borrower shall use the applicable Bank’s Standard Bidding/Request for Proposals Document with minimum changes, acceptable to the Bank, as necessary to address project-specific conditions”

– 2.3: “For goods, works and non-consulting services, in cases where the Bank has not issued the applicable Standard Bidding/Request for Proposals Document, the Borrower shall use other internationally recognized standard conditions of contract and contract forms acceptable to the Bank.”

– 2.19: “All international competitive procurement contracts are required to include appropriate mechanisms for independent dispute resolution such as Dispute Review Experts or Dispute Review Boards. International commercial arbitration in a neutral venue shall be required unlessthe national regulations and arbitration procedures are acceptable to the Bank in terms of equivalence to international commercial arbitration and the venue is neutral, or the contract has been awarded to a bidder/consultant from the Borrower’s country.”


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WORKING GROUP “WB PROCUREMENT”ICB THRESHOLDS

Annex III of Bank Procedure lists current thresholds for ICB processes by countryICB thresholds are determined on the basis of (i) the size, depth, and conditions of specific markets, and the capacity of the local industry; (ii) the assessed level of interest of foreign providers to participate in domestic markets; (iii) the nature, complexity, and level of risk of procurement activity

Country (like) Open international / US$ Open national / US$

Cambodia, Djibouti, Lao 2 mil. 2 mil.

Honduras, Liberia, Nepal 5 mil. 5 mil.

Burundi, Ethiopia, Malawi 7 mil. 7 mil.

Bangladesh, Benin, DRC 10 mil. 10 mil.

Ghana, Kenya, Tanzania 15 mil. 15 mil.

South Africa, Vietnam 20 mil. 20 mil.

Argentina, Brazil, Mexico 25 mil. 25 mil.

China & India 40 mil. 40 mil.


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WORKING GROUP “WB PROCUREMENT”DRAFT PROCUREMENT REGULATIONS AIIB

China-led Asian Infrastructure Investment Bank (AIIB) expected to begin operations by the end of 2015.

Will AIIB Procurement be in line with World Bank Procurement? - Probably not.

– Integrity & Fairness are not a Core Procurement Principles

– “Country Procurement Systems” instead of “Agency Procurement Arrangements”

– Sanctions policy in relation to Fraud & Corruption not yet elaborated

– Bank has no obligation to facilitate a resolution under contract-related complaints

– No reference to Sustainable Procurement option

– No indication of legal consequences of an ALT, but reference to tender documents

– Lack of clear preference for ICB in case of “complex, high-risk or high-value contracts”

– Ambiguity with respect to the MEAT “most economically advantageous offer”

– No commitment to international arbitration in a neutral venue


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ISO 37001 ON ANTI-BRIBERY STANDARD PROJECT COMMITTEE MEETING IN KL

Report by Per Nielsen

Chairman Joint FIEC/EIC Working Group “Ethics” 4th Meeting of the ISO Project Committee (ISO-PC) from 28/9 – 2/10 2015 in Kuala Lumpur

FIEC and EIC were represented by Per Nielsen

Future “roadmap”:

– Finalisation of Draft International Standard (DIS) by 30 October 2015

– DIS ballot to be issued by ISO Central Secretariat by 07 January 2016

– Next ISO-PC Meeting: Resolution of comments on DIS

Agreement on new ISO 37001 standard ???


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ISO 37001 ON ANTI-BRIBERY STANDARD PROJECT COMMITTEE MEETING IN KL

Report by Per Nielsen

Chairman Joint FIEC/EIC Working Group “Ethics”

Countries and organizations participating in PC 278:

– Argentina – Armenia – Austria – Australia – Canada – China – Colombia – Cote d’Ivoire –Czech Republic – Denmark – Egypt – Finland – France- Germany – HongKong, China –Hungary – India – Israel – Japan – Malaysia – Mauritius – Mexico – Nigeria – Norway –Serbia – Spain – Sweden – Switzerland – Tunisia – United Kingdom – USA – Zambia

– TI – OECD – FIEC/EIC


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PROPOSED NEW EIC WORKING GROUP “CSR”

Should EIC set up a new Working Group „CSR / Responsible Business Conduct“?

Proposed Terms of Reference:

– Publish benchmark or best practice examples from the EIC membership to show that European international contractors are the leaders in their sector

– Define an EIC CSR policy statement which Member Federations could refer on the national level

– Respond to the future EU Guidelines and Regulations


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CONTACTS WITH THE EUROPEAN COMMISSION

Meeting between EIC President and EU Development Commissioner on 7 September 2015 on EIC proposal for “Blending 2.0”

DG DEVCO Director for Sustainable Growth also participated

EU Commissioner confirmed that partnering with the private sector has become an integral part of EU development cooperation

€8 billion EU grants shall generate €40 billion from public finance institutions which should mobilise over €100 billion in total investment by 2020

Positive result of the Meeting: EIC has been invited to present its proposal in the next Meting of the EU Platform for Blending in External Cooperation (EUBEC) on 16 October 2016

EIC shall be supported by two “friendly” ECAs (Credendo and EKF) and the European Banking Federation to validate our proposal

Commissioner announced launch of a new EU Africa Investment Facility before end 2016


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CONTACTS WITH THE EUROPEAN COMMISSION


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EIC WORKSHOP AT SPRING 2016 CONFERENCE

Date 21-22 April 2016Venue Berlin, InterContinental Hotel

Social ProgrammeGuided walking tour around rooftop terrace and glass dome of German Bundestag and subsequent Reception & Dinner at Rooftop Restaurant “Kaefer’s”

Accompanying Persons’ ProgrammeGuided tour of Royal Porcelain Factory, boat tour on Spree river and visit of Berlin TV tower

Post-Conference ProgrammeGuided tour to reconstructed Berlin Palace (Humboldt Forum) and dinner at “Humboldt Terrassen”

THANK YOU

Frank Kehlenbach

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