# Presentation: 450124

## Engaging With the MDBs:

**Engaging With the MDBs:**
**PID, PAD, Procure**

- David W. Fulton
- Director of Business Liaison
- Office of the U.S. Executive Director
- The World Bank Group

## U.S. Commercial Service Liaison Offices 

**U.S. Commercial Service Liaison Offices **

**The World Bank – Washington, DC**
**www.worldbank.org**
**David Fulton, David.Fulton@mail.doc.gov **
**Tel: (202) 458-0120 ****	****Fax: (202) 477-2967**

**European Bank for Reconstruction & Development (EBRD) – London, UK**
**www.ebrd.com**
**Sanford Owens, **_**Sanford.Owens@mail.doc.go**_
**Tel: 011 44 20 7588 8490  ****	****Fax: 011 44 20 7588 8443**

**Inter-American Development Bank (IDB) – Washington, DC**
**www.iadb.org**
**Americo Tadeu, **_**Americo.Tadeu@mail.doc.gov**_
**Tel: (202) 623-2598****	****    ****	****Fax: (202) 623-2039**

**Asian Development Bank (ADB) – Manila, Philippines**
**www.adb.org**
**Kenneth Reidbord, **_**Kenneth.Reidbord@mail.doc.gov **_
**Tel: 011 (63-2) 887-1345  ****	****	****Fax: 011 (63-2) 887-1164**

**African Development Bank (AfDB) – Tunis, Tunisia**
**www.afdb.org**
**Christel Fredrikson, **_**Christel.Fredrikson@mail.doc.gov **_
**Tel: 011 216 - 71- 831- 117 ****	****Fax: 011 216-71- 830 - 244**

## Bank-funded procurement:  a foreign government borrows money from the MDB to buy goods and services 

**Bank-funded procurement:  a foreign government borrows money from the MDB to buy goods and services **
**Corporate procurement:  the MDB buys goods and services for its own account**
**Investment products: trade finance, investment funds, carbon finance**
**Risk mitigation products: political risk insurance**

## World Bank Lending by Sector \ Best Prospects

**World Bank Lending by Sector \ Best Prospects**

## World Bank Lending by Region

**World Bank Lending by Region**

## Clean Technology Fund (CTF)

-  The CTF provides _concessional funding_ to invest in projects that contribute to
- demonstration, deployment, and transfer of low-carbon technologies with a
- significant potential for long-term greenhouse gas savings
-  Target technologies focus on AETs (e.g., renewable energy, energy efficiency in power sector, and end-use in building, industry and agriculture)
-  _Supported technologies will be fairly mature_ with most technical issues resolved
- and a fair degree of cost and operating certainty, but not yet fully mature where
- they are taken up without financial support in developing countries
*CTF creates demand for technologies with most technical issues resolved but*
*still requiring scale-up. While CTF investments will have secondary*
*benefits for policy development, companies and the technology itself, it*
*primarily creates a market for emerging technologies with its funds*
*www.worldbank.org/cif*

**Clean Technology Fund (CTF)**

## World Bank on Renewables and Energy Efficiency

**WASHINGTON, October 2, 2008 – The World Bank Group today announced an ****87 per cent increase**** in funding for renewable energy (RE) and energy efficiency (EE) projects and programs in developing countries in the past fiscal year. Total RE and EE commitments for the year ended June 30, 2008 reached nearly ****US$2.7 billion.**
** **
**The commitments by the World Bank Group, including Carbon Finance operations and co-financing support from the Global Environment Facility (GEF), were made up of the following:**
**US$1.192 billion for Energy Efficiency; **
**US$476 million for New-Renewable Energy including wind, solar, biomass, geothermal, and hydropower projects, and;  **
**US$1.007 billion for hydropower projects with capacities of more than 10MW per facility.**

**World Bank on Renewables and Energy Efficiency**

## LendingThe World Bank finances and supports a project at the request of the Government. An appraisal of the project's feasibility and loan terms is followed by negotiations, Board review, and signing. The loan only becomes effective after it has been ratified by the government.    
Procurement Information  Under World Bank-financed projects, procurement is managed by the government. The government unit responsible is called the 'Project Implementing Agency.'  Detailed guidance on the Bank’s procurement policies and procedures is available in the Resource Guide to Consulting, Supply and Contracting Opportunities in Projects.

Results: Projects in ActionCountries borrow money from the World Bank to translate their development plans into concrete action.

**Procurement Information ** Under World Bank-financed projects, procurement is managed by the government. The government unit responsible is called the 'Project Implementing Agency.'  Detailed guidance on the Bank’s procurement policies and procedures is available in the Resource Guide to Consulting, Supply and Contracting Opportunities in Projects.
**Results: Projects in Action**Countries borrow money from the World Bank to translate their development plans into concrete action.

## The Project Cycle: PID, PAD, Procure

**1. Country Assistance Strategy**
**Beginning of the Loan Process**

**2. Project Identification**
**2 Years or Less Before Implementation**

**3. Project Preparation**
**1 – 2 Years, Depending on ****Urgency & Complexity**

**4. Project Appraisal**
** ****3 – 6 Months**

**5. Loan Negotiations**
**1 – 2 Months**

**6. Loan Approval ****and Signing**
**1 – 2 Weeks**

**8. Project Supervision**
**1 – 7 Years or More**

**7. Implementation**
**1 – 7 Years or More**

**9. Evaluation**
**Following Project Completion**

- World Bank activity

- Joint activity

- Borrower activity

- Bid Opportunity

- The MDB Project Cycle defines how projects areprogrammed, identified, prepared and approved.

**Project Information Document ****(PID) made publicly available.**

**Project Appraisal Document (PAD) and Procurement Plan made publicly available.**

**The Project Cycle: PID, PAD, Procure**

**Notes:**
The MDB WHEEL of FORTUNE:

This is the project cycle for the MDBs.  It describes the process whereby projects are programmed, prepared, approved and implemented.  

## Analyzing the Project Cycle

**Analyzing the Project Cycle**

| Stage | Type of Opportunity | Buyer | Sources of Information |
| --- | --- | --- | --- |
| Concept | Short-term Consulting | World Bank | ESW, PRSP, CAS,  Sector Studies,  published REI |
| Identification | Short-term Consulting | World Bank | MOS, 
Published REI |
| Preparation | Short-term, Medium-term Consulting Services | Borrowing Country | MOS, PID |
| Appraisal | Short-term Consulting | World Bank | MOS, PID, published REI |
| Negotiation &  Approval | N/A | N/A | GPN |
| Implementation | Consulting Services, Equipment, Goods & Civil Works | Borrowing Country | PID, PAD, GPN, REI, SPN, PP |
| Supervision | Short Term Consulting | World Bank | PID, PAD, GPN, REI, SPN, PP |
| Post Evaluation | Short Term Consulting | World Bank | PID, PAD, GPN, REI, SPN, PP |

## Slide 11

## CURRENT MDB Procurement

| GEOTHERMAL ENERGY PROJECT  | Armenia | Geological scouting survey and Geochemical analyses of selected potential geothermal fields and Magneto-telluric (MT) sounding of the Gridzhor and Karkar selected potential geothermal fields  | World Bank/GEF |
| --- | --- | --- | --- |
| Electricity Supply Project | Lesotho | Technical Assistance --Pre-feasibility of 1000 MWPump storage scheme | African Development Bank |
| Promotion of Sustainable Energy | Bahamas | I.   Design/Implementation of National Energy Efficiency Plan 
II.  Assessment of RE potential in the Bahamas 
III. Development of Waste-to-Energy Projects  | Inter-American Development Bank |
| Photovoltaic Equipment and Installation | Morocco | Supply of photovoltaic equipment, technical aspects of installation, interconnection of on-grid PV systems on the rooftops of businesses and homes up to 200,000 small PV systems, for a total capacity of 150MW before 2015  | World Bank |

## Money Flow for Loans

- Consultants

- Goods & Services

**Loan/credit**

- Government

- The World Bank

- Government Ministry  Implementing Agency
- aka “The Buyer”)

- Civil Works
- (Bricks & Mortar)

**Money Flow for Loans**

**Money Flow**

**Money Flow**

**Money Flow**

**Money Flow**

- Sub-suppliers

- Sub-suppliers

- Sub-suppliers

- Technical assistance

## The PID PAD Procure Pipeline

- MOS

- Board approval and PAD release

**Procurement notice**

**Procurement notice**

**Procurement notice**

**Procurement notice**

**Procurement notice**

**The PID PAD Procure Pipeline**

- PID: Project Information Document
- PAD: Project Appraisal Document

## The PID PAD Procure Pipeline

- MOS

- Board approval and PAD release

**Procurement notice**

**The PID PAD Procure Pipeline**

## World Bank Project Cycle Documents

- _[www.worldbank.org](http://www.worldbank.org/)_
_**PID (Project Information Document)**_** – The first publicly available document about a given project is the 6-7 page PID, which conceptualizes the project. **** **
_**Project Appraisal Document (PAD)**_** – The 100+ page PAD offers detailed information, including a procurement plan for the first 18 months.**** **
_**Procure**_** – Procurement notices are published locally and in two websites.**

**World Bank Project Cycle Documents**

## Finding Procurement Notices

**General Procurement Notices (GPNs) & Specific Procurement Notices (SPNs) are published in-country and in fee-based online systems:**
-  UN Development Business (UNDBonline):
-   _[www.devbusiness.com](http://www.devbusiness.com/)_
-  Development Gateway (dgMarket):
-   _[www.dgmarket.com](http://www.dgmarket.com/)_
-  Also, National Print or Web Announcement in  Borrowing Country

**Finding Procurement Notices**

## World Bank Strategies

- Review procurement notices and trace them back through the process to identify the type of projects that produced opportunities for you in the past
- Identify countries in which the Bank has a project in the pipeline (or one that has been recently approved)
- Target the countries where you already have a presence or a strong local partner plus a Bank project in the pipeline
- Engage with the buyer to educate and influence prior to development of tenders related to the project

**World Bank Strategies**

## World Bank Targeting Matrix

**World Bank Targeting Matrix**

| Country  | Company 
Presence? | Strong Local Partner? | Appropriate 
World Bank Projects?
 | Priority Target Market? |
| --- | --- | --- | --- | --- |
| Argentina | Yes |  | Yes | Yes |
| Bolivia |  | Yes | Yes | Maybe |
| India | Yes |  | Yes | Yes |
| Mali |  |  | Yes | No |
| Romania |  | Yes | Yes | Maybe |
| Thailand | Yes |  | Yes | Yes |
| Zaire |  | Yes |  | No |

## Procurement Guidelines

**Procurement Guidelines**

- GUIDELINES
- PROCUREMENT
- Under
- IBRD LOANS
- AND
- IDA CREDITS
- MAY 2004
- Revised October 2006

- GUIDELINES
- SELECTION
- AND
- EMPLOYMENT
- OF
- CONSULTANTS
- BY
- WORLD BANK
- BORROWERS
- MAY 2004
- Revised October 2006

## Consulting & Services Purchased by MDBs

| Project Services |  | Advisory Services |
| --- | --- | --- |
| Preparation | Implementation |  |
|  Sector studies
 Master plans
 Feasibility studies
 Design studies
 Specialist studies |  Bidding documents
 Procurement assistance
 Construction supervision
 Project management
 Solutions integration
 Training
 SW development | Strategy & policy
Regulation
Institutional reform
Capacity building
Management & leadership |

**Consulting & Services Purchased by MDBs**

## International Competitive Bidding (ICB)

**International Competitive Bidding (ICB)**

- Open to all eligible bidders from all countries
- International advertising of bid opportunities
- World Bank conducts “prior review”
- Standard bidding documents
- Clear evaluation criteria
- Public bid opening
- Prequalification for large contracts
- Payment in foreign or local currencies
- International commercial arbitration

## Goods/Works/Services vs. Consulting

**Goods/Works/Services vs. Consulting**

| Differences in Scope & Procedures |  |  | Differences in Terminology |  |  |
| --- | --- | --- | --- | --- | --- |
| Goods, Works, Services | Consulting Services |  | Goods | Works \ Services | Consulting Services |
| Product based | Knowledge based |  | Puchaser | Employer | Client |
| Open competition | Short-listing (Restricted competition) |  | Supplier | Contractor | Consultant\Firm |
| Public bid opening | Non-public opening of technical proposal |  | Bid | Bid | Proposal |
| Price major evaluation factor | Quality major evaluation factor |  | Standard Bid Doc’t (SBD) | Standard Bid Doc’t (SBD) | Standard Request for Proposal (RFP) |
| Detailed specifications | Terms of Reference |  | Specific Procurement Notice (SPN) | Specific Procurement Notice (SPN) | Expression of Interest (EOI) |
| Single-stage procedure | Two-envelope procedure |  | Price | Price | Quality/Price |
| No negotiations | Negotiations |  | Lowest Evaluated Bidder (LEB) | Lowest Evaluated Bidder (LEB) | Highest Ranked Firm |

## Goods/Works/Services vs. Consulting

| Goods, Works, Services | Consulting Services |
| --- | --- |
| Steps in the Bid Process | Steps in the Selection Process |
| General Procurement Notice Advertised | General Procurement Notice Advertised |
| Specific Procurement Notice Advertised  | Request for Expressions of Interest Advertised |
| Bid Preparation:  Goods\Works (not less than 6 wks)  Complex Goods\Works (not less than 12 wks)  Includes Clarification Process and\or Pre-bid  Conference (Complex Projects) | Prequalification & Shortlisting of Firms:   Only six firms with a wide geographic spread   No more than two from any one country   At least, one firm from a developing country |
| 
 | Proposal Preparation:   Normal Assignments (not less than 4 wks)  Complex Assignments (not more than 3 mos.)  Includes Clarification Process and\or Pre-bid  Conference (Complex Projects) |
| Bid Submission & Public Bid Opening | Request for Proposals Released to Shorlisted Firms |
| Examination & Evaluation (Blackout w/ Bidders, except for Written Bid Clarifications Requested by the Purchaser) | Technical Evaluation (Blackout w/ Bidders, except for Written Bid Clarifications Requested by the Client) |
| Post Qualification of Lowest Evaluated Bid | Public Opening of Financial Proposals |
| Contract Award | Negotiations & Award |

**Goods/Works/Services vs. Consulting**

## Consultants Strategy

**Consultants Strategy**

- Target assignments based on regional  experience and technical qualifications
- Obtain background information on project:
- Country Assistance Strategy (CAS)
- Sector Strategies
- Project Information Document (PID)
- Project Appraisal Document (PAD)
- Understand Roles of Borrower and Bank
- Target marketing at appropriate time

## World Bank Tactics

- Start early and have stamina
- Make contacts in the host country project unit
- Use the U.S. Embassy to enhance your engagement
- Identify local partners if needed
- Solve the client’s problem
- Respond precisely to the requirements
- Ask questions – don’t guess or assume
- Assess the competition – compete where you are competitive

**World Bank Tactics**

## CS World Bank

**CS World Bank**

- Respond precisely to the requirements of the proposal
- Provide highly qualified staff and ensure that they are actually available for the assignment
- Do not exaggerate qualifications! Respond precisely to technical specifications.
- Unclear? Ask up front, do NOT guess or assume.
- Submit bid/proposals in time. Bids that are even one minute late will be rejected.
- Assess the competition. Compete where YOU are competitive.

**Bid Preparation: Do’s & Don’ts **

## Goods/Works/Services vs. Consulting

| Goods, Works, Services | Consulting Services |
| --- | --- |
| Contents of Invitation for Bid (IFB) | Contents of Request for Proposal (RFP) |
| Letter of Invitation & Instruction to Bidders | Letter of Invitation & Instruction to Consultants |
| Bid Data Sheet: Technical Specifications, Drawings & Relevant Technical Data | Data Sheet, Standard Forms, & Form of Contract |
| Schedule of Requirements (goods) / Bill of Quantities (works), Delivery / Completion Schedule | Terms of Reference (TOR):
Background & Objectives
Scope & Phasing of Services
Decision Points & Timing of Deliverables
Client Contribution
Supplies Required |
| Forms of Payment: Lump-sum, Unit Prices, or  Reimburseable Cost (May include Advance\Progress Payments for Major Supply & Installation Contracts) |  |
| Sample Bid Documents (Form of Bid, Form of Contract, Format of Bid\Performance Securities, and Manufacturer’s Authorization Form) | Proposed Contract: Lump-sum or Time-based |
| Conditions of Contract: (General & Specific) | Conditions of Contract: (General & Specific) |

**Goods/Works/Services vs. Consulting**

## Goods/Works/Services vs. Consulting

| Goods, Works, Services | Consulting Services |
| --- | --- |
| Lowest “Evaluated” Bid | Highest Ranked Proposal (QCBS) |
| The bid with the lowest evaluated cost, but not necessarily the lowest submitted price, shall be selected for award. | The firm with the highest total score shall be invited for negotiations. |
| Substantial Responsiveness to Technical & Commercial Requirements | QCBS: Technical Eval 80% weighted \            Financial Evaluation 20% weighted |
| As stated in bidding documents, there are factors, other than price, that may be assigned a monetary value in bid evaluation; examples include: Operating Cost, Efficiency & Compatibility Installation; Training & Commissioning; Inland Transport & Insurance; etc. | Basis of Technical Evaluation Score:
   Consultant’s Specific Experience: 0 – 10 pts
   Methodology: 20 – 50 pts
   Key Staff (CVs):  30 – 60 pts
   Transfer of Knowledge: 0 – 10 pts
   Participation by Nationals: 0 – 10 pts |
| Fully Compliant Bid Security & Bid Validity |  |

**Goods/Works/Services vs. Consulting**

## www.esmap.org
www.worldbank.org/energy
www.worldbank.org/projects
www.worldbank.org/cif 
 www.worldbank.org/topics
www.worldbank.org/business

- www.worldbank.org/energy
- www.worldbank.org/projects
- www.worldbank.org/cif
-  www.worldbank.org/topics
- www.worldbank.org/business

**Resources: World Bank Website**

## Project developers
Business development specialists
Capture managers
Procurement specialists
Government affairs specialists
Finance specialists
Renewable and energy efficiency consultants

- Business development specialists
- Capture managers
- Procurement specialists
- Government affairs specialists
- Finance specialists
- Renewable and energy efficiency consultants

**Resources: MDB Training Sessions**

- Designed for:

## David W. Fulton
Director of Business Liaison
Office of the U.S. Executive Director
The World Bank Group
dfulton@worldbank.org

- Director of Business Liaison
- Office of the U.S. Executive Director
- The World Bank Group
- dfulton@worldbank.org